Data disclosed today by the European Commission shows that the Recovery and Resilience Facility, which funds the Recovery and Resilience Plans (PRR), “has already disbursed 367 billion euros among the member states, contributing to essential objectives such as economic and social resilience and the green and digital transitions.”
This amount is divided into 224.95 billion euros in grants and 141.72 billion euros in loans.
The context for this is an annual report on the progress of the Recovery and Resilience Facility, highlighting the impact of the mechanism on public investment in the European Union (EU), “which is expected to increase to 3.8% of GDP [Gross Domestic Product] in 2025, compared to 3.2% in 2019.”
Included in this public investment are areas such as the decarbonization and digitalization of industrial production and services, along with “a wide range of structural reforms aimed at boosting long-term growth and economic and social resilience.”
However, since the Recovery and Resilience Facility ends in 2026, the European Commission “urges member states to accelerate the execution of their respective PRR,” including Portugal.
“Member states must meet all milestones and targets by August 31, 2026, with the Commission making the final payments by December 31, 2026,” it is noted.
In the report published today, the European Commission recalls that Portugal has already received “over 50% of its allocation,” but must “increase its pace of implementation” as more than half of the milestones and targets are still unmet.
Overall, the Portuguese PRR values 22.2 billion euros, with 16.3 billion euros in grants and 5.9 billion euros in loans from the Recovery and Resilience Facility.
This represents 8.29% of Portugal’s GDP and corresponds to 349 investments and 89 reforms.
Portugal is, therefore, among the countries expected to see the greatest 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 was established to address the economic consequences of the COVID-19 pandemic and came into effect in 2021, with a total of 800 billion euros (at current prices). This involves 650 billion euros at 2021 prices.
