Government Confirms Second Reprogramming of RRP to Channel Funds into Corporate Sector
The Portuguese government is preparing a second reprogramming of its Recovery and Resilience Plan (RRP), a strategic move designed to redirect unspent funds toward the private sector and correct what the Minister of Economy, Manuel Castro Almeida, described as an “original sin” of the plan—its initial heavy focus on the state. Speaking to the parliamentary Committee on Economy this Tuesday, the minister guaranteed that “Portugal will not lose a single euro of subsidies” and that the execution of the funds is “under control.”
The announcement follows months of anticipation and aims to ensure the complete absorption of the EU’s post-pandemic recovery funds, known as the “bazooka.” Castro Almeida stated his conviction that all subsidies will be fully executed by the deadline. He revealed that a new instrument for innovation and competitiveness will be established, housed within the Banco Português de Fomento (BPF), with an initial endowment of €315 million. This mechanism is designed to receive any funds from other areas of the RRP where execution lags or targets are not met, effectively creating a backstop to prevent the loss of funds.
“If there is any delay, any unmet target that would cause Portugal to lose money, we will alter the milestones and targets in that area and add to innovation and competitiveness,” Castro Almeida explained. This flexibility will allow the BPF to sign contracts with corporate beneficiaries until August 31, 2026, even if the projects are completed later, thus securing the funds for the national economy. The minister emphasized that this change will “do some justice to the business sector,” which was “poorly endowed in the initial programming.”
In response to criticism regarding the pace of execution, Castro Almeida defended Portugal's performance relative to its European peers. He noted that Portugal was the second country to submit its sixth and seventh payment requests to the European Commission, meeting all milestones ahead of schedule. While financial execution currently stands at approximately 40% for certified milestones, he argued that Portugal is “in the top half of European countries in terms of execution.”
The reprogramming also includes a significant reinforcement of Portugal’s high-tech ambitions through the “mobilizing agendas.” An additional €279 million will be allocated to two consortiums in the aerospace and aeronautics sectors. This investment will support the launch of five new high-resolution satellites from the Azores, a project with heavy involvement from the Portuguese Air Force and private enterprise. “The Azores have a privileged location to launch our satellites and others,” the minister remarked, pointing to the strategic value for defense and civil protection.
A further €100 million will be invested in the construction and certification of a Portuguese-made aircraft. The planned 19-seat regional plane, intended for both civil and military applications, represents a major step toward establishing a domestic aircraft manufacturing capability. According to the minister, these projects are aimed at creating opportunities for Portugal’s “best students” and preventing a brain drain in critical engineering fields.
The government plans to present the full details of the RRP and PT2030 reprogramming to the committee by early October. The policy shift underscores a clear objective to use the recovery funds not just for public infrastructure but as a catalyst for private sector growth and technological sovereignty. This strategic pivot is expected to stimulate corporate investment and drive economic activity in emerging high-value sectors across the country.
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