PORTUGAL – National recovery fund priorities

According to the first draft of Portugal’s national plan, delivered on Thursday in Brussels by Prime Minister António Costa, the areas of social vulnerability and productive potential and employment are those to which the executive will allocate more community funds, totalling €5.6 billion (respectively €3.1 billion and €2.5 billion).

This involves a total of €13.9 billion in outright grants (at current prices) that the country can raise through the new EU Recovery Fund.

The Portuguese government is considering using loans to make investments of €4.3 billion in affordable public housing, business support and railway rolling stock, as said on Thursday. Read more here about the Portuguese priorities.

In the first draft of the Recovery and Resilience Plan delivered on Thursday in Brussels, the government devotes a chapter to investments that require clarification regarding loans, totalling €4.3 billion.

The creation of social responses, with a focus on the National Health Service and housing, and the promotion of employment through more investment and skills will be Lisbon’s priorities for the fund.

Last month, Costa had said that Portugal would “make full use” of the grants it could receive from the European Union Recovery Fund, but that it would not use its share of loans from the programme.

“Portugal has a very high public debt and aims to come out of this crisis stronger from a social point of view, but also more solid financially,” he said. “Therefore, the option we have is to make full use of the grants and not to use the part relating to loans until the financial situation of the country allows it.”

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