Government to Revise Portugal's RRP, Adjusting Lisbon Metro and School Funding
The Portuguese government has announced a strategic shift in its management of the Recovery and Resilience Plan (RRP), opting for a 'review to simplify procedures' rather than a full-scale second reprogramming. The policy objective, as stated by Minister of Adjunct and for Territorial Cohesion, Castro Almeida, during a parliamentary hearing, is to streamline the execution of the multi-billion euro plan by reducing bureaucratic hurdles. This initiative aims to consolidate what the minister described as a 'very fragmented' set of milestones and targets compared to other EU member states, ensuring a more efficient use of funds without diminishing the plan's core ambitions.
The implementation strategy for this review is set on a fast track, with a deadline for submission by the end of October. Following this review, the government will proceed with its eighth payment request from the European Commission. The process involves consulting with intermediary bodies and beneficiaries to identify potential bottlenecks and re-evaluate project execution capabilities. This proactive approach is designed to ensure that Portugal maximizes its absorption of the available EU funds, with the minister firmly stating the goal is to 'not lose a euro' of the subsidies.
A significant outcome of this review will be the reallocation of funds within the RRP's loan portfolio, affecting key public investment areas. The budget allocation for the construction and renovation of schools is set to be increased, as the number of completed projects is projected to exceed initial forecasts. In a notable policy adjustment for the capital, Minister Castro Almeida confirmed that the government will 'reduce ambition on the red line of the metro' in Lisbon. This decision signals a shift in infrastructure priorities and will be closely watched by urban planners and property developers in the affected areas of the city.
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The review will also formalize the launch of a new financial instrument dedicated to innovation and competitiveness, which will be capitalized with any unexecuted funds from other parts of the RRP. The first call for proposals under this instrument is scheduled to open next week, with an indicative total allocation of €300 million across three initial tenders. This mechanism provides a flexible way to redirect capital towards dynamic sectors of the economy, supporting business growth and modernization. The government's monitoring and evaluation framework for the RRP is being tightened, with Minister Castro Almeida admitting that the plan 'started late' due to delays in setting up the necessary IT platforms for application analysis.
In his address, the minister also touched upon the broader economic context, highlighting the strong performance of the tourism sector. He anticipated that 2025 will likely be the 'best year ever' for tourism, with key indicators for guest numbers and revenue already up by 3.5% and 8.4% respectively in the first half of the year. To further boost this momentum, a new long-term tourism strategy with a 2035 horizon will be unveiled. This future policy development will aim to improve Portugal's position in global tourism rankings by focusing on value creation, balanced regional development, and overall competitiveness, steering investment towards less-developed regions of the country. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.