Eu_recovery_fund

European recovery package brings over €45B to Portugal

  • Eu_recovery_fund
    January 11, 2021
    The EU recovery package combines the multiannual budget for 2021-2027 of €1.07 trillion and the ‘NextGenerationEU Recovery Fund’ of €750 billion.

    To tackle the deepest crisis since World War II, the EU has equipped itself with a recovery package of €1.8 trillion, with more than €45 billion allocated to Portugal.

    This package combines the multiannual budget for 2021-2027 of €1.07 trillion and the ‘NextGenerationEU Recovery Fund’ of €750 billion.

    The adoption of this financial support is all the more significant as the Recovery Fund is financed by common debt contracted by the European Commission on the markets on behalf of the 27, and more than half of the sum (€390 billion) is earmarked for the member states as non-repayable loans.

    For Portugal, €30 billion of the budget has been earmarked for the next seven years, plus €15.3 billion in grants, with the possibility for the country to borrow more if it so wishes.

    The creation of social responses, with investment in the country’s national health service (SNS) and housing, and the promotion of employment through more investment and skills are the Portuguese government’s priorities for the fund.

    According to the first draft delivered in Brussels, 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).

    The Recovery Fund will, however, only become operational after a few more legislative procedures have been complied with, and the approval of the national recovery and resilience plans that each Member State must draw up and negotiate with Brussels is still required, with Portugal being among the first to do so.

    The Portugal’s presidency of the European Union will be responsible for approving the rules and managing the ratification process by the national parliaments.

    Portugal’s foreign minister said the aim is to reach the end of June with the Multiannual Financial Framework (MFF – the EU’s budget for 2021-2027), all the regulations approved and each country’s national recovery programmes launched.

     

    Source: AICEP, ECO NEWS