Government Announces €315 Million Financial Instrument for Business Activity
The Portuguese Government has launched a financial instrument with an initial allocation of €315 million to support the activity of national companies. The announcement was made by the Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, during the '9 Keys for the Future of Europe' conference at the AESE Business School in Lisbon, an event marking the ninth anniversary of Jornal Económico.
Minister Castro Almeida detailed that the new instrument for innovation and competitiveness will be managed by the Banco Português de Fomento. He stated, “it has started with 315 million euros, which will grow due to the adjustments we will make to the RRP and will support more innovative investments that will increase the competitiveness of companies.” This initiative is part of a broader strategy to leverage funds from the European Commission's Recovery and Resilience Plan (RRP) to stimulate the national economy.
The minister provided a firm guarantee that all available EU subsidies will be fully utilized. “At the end of 2026, there will be no amount of the subsidies that the European Commission made available to Portugal left unapplied, as all funds that cannot be executed in any program will be applied to business innovation through this financial instrument,” he affirmed, ensuring a commitment to efficient capital deployment.
Eligibility for the funds is strictly tied to innovation and strategic alignment with four key pillars: reindustrialization; the economy of defense and security; the deep tech ecosystem; and the adoption of artificial intelligence in small and medium-sized enterprises (SMEs). This focus aims to modernize Portugal's business landscape and enhance its global competitiveness. “Through these four areas, the financial support from the RRP will be channeled to the reindustrialization of the business fabric in an environment more favorable to innovation,” Castro Almeida noted.
The rollout of the program is imminent, with the first three public tenders set to be launched next week, releasing an initial tranche of €300 million. The distribution will allocate €150 million to the 'reindustrialize' line, €100 million to the 'artificial intelligence for SMEs' line, and €50 million to the 'defense and security economy' line. The latter two are aligned with strategic European frameworks, including recommendations from the Draghi plan and the 'Compass for Competitiveness'.
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The government's economic philosophy was also a central theme of the minister's address. He championed a pro-business stance, stating, “The more companies grow, the better for us. Profit is not a problem. Today's profit will be the equity for tomorrow's investment.” He linked corporate success directly to broader societal benefits, including the reduction of inequality and the strengthening of social and territorial cohesion.
This policy reflects the Executive's objective to cultivate a more competitive, value-added economy. Castro Almeida described it as an environment “oriented towards results, where merit is valued as stimulated investment and bureaucracy is fought with determination.” He concluded by positioning the instrument as a critical contribution to boosting exports and achieving the national economic growth targets.
The implementation of this financial tool is expected to provide a significant impetus for companies engaged in high-value sectors, potentially fostering new industrial projects and technological advancements across Portugal. The focus on reindustrialization and technology could have secondary effects on the commercial and industrial property markets as supported companies expand their operations and infrastructure needs.
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