“Regarding the PRR, it is, obviously, an important driver of public investment, including in Portugal, so it’s important to focus on utilizing this funding to the fullest, especially the subsidy component,” stated the European Commissioner for Economy, Valdis Dombrovskis, during an interview with European media in Brussels.
On the day the European Commission presented its autumn economic forecasts, the European official emphasized the institution’s efforts to work with member states to simplify and make final adjustments to plans, enabling states to fully concentrate on implementation and maximizing PRR funding utilization.
Portugal has pledged to use all PRR subsidies, with a deadline set for August 2026, marking the program’s end.
“It’s worth noting that the PRR expires next year [and then] EU structural funds and the cohesion fund will regain prominence in supporting public investment in member states, including Portugal, so we expect this funding to also accelerate in Portugal,” he highlighted.
Data revealed by Valdis Dombrovskis shows that, quantitatively, “expenditures funded under the PRR are expected to reach about 2% of GDP [Gross Domestic Product] this year and 3% next year” in Portugal.
“Regarding structural funds [such as cohesion funds], their importance is increasing, especially from 2027, when it is expected to reach 0.9% of GDP,” he added.
The executive’s autumn forecasts indicate that “fiscal policy trajectories in the EU reflect increasing defense expenditure needs, but are also accompanied by internal political uncertainties in some member states.”
“Moreover, the approaching end of the Recovery and Resilience Facility [funding the PRR], in August 2026, poses challenges for member states in terms of accelerating the effective execution of their plans and increasing the use of cohesion funds in 2027, notably in countries where investment heavily depends on EU support.”
In total, the Portuguese PRR amounts to 22.2 billion euros, with 16.3 billion euros in subsidies and 5.9 billion euros in loans from the Recovery and Resilience Facility.
This represents 8.29% of Portugal’s GDP and encompasses 349 investments and 89 reforms.
Therefore, Portugal stands among the countries expected to register significant GDP gains.
Currently, the country has already received 9.34 billion euros in grants and 3.39 billion euros in loans, with the plan’s execution rate at 40%.
The Recovery and Resilience Facility, financing the PRR, was launched to address the economic impact of the covid-19 pandemic, coming into force in 2021 with a total of 800 billion euros (at current prices), equivalent to 650 billion euros at 2021 prices.
