Brussels (The Brussels Morning Newspaper) – The European Commission has today on 5 August 2024 disbursed to Portugal the remaining €714 million under the payment proposal for the third and fourth instalments under the Recovery and Resilience Facility (RRF).
Why Did the EU Pause Payments to Portugal?
As for all Member States, amounts made to Portugal under the RRF are performance-based and rely on the performance of the investments and reforms defined in its recovery and resilience plan. The EU Commission, in December 2023, found that one milestone and one target discussing reforms of the health sector and one milestone linked to the reform of regulated professions out of the 47 milestones and targets contained in the third and fourth instalments were not satisfactorily fulfilled.
On that basis, the EU Commission paused €810 million (gross amount). Portugal took additional policy activity in the six months following the recess.
How Did Portugal Fulfill Its RRF Milestones and Targets?
In June 2024, the EU Commission concluded that the outstanding landmarks and targets were satisfactorily fulfilled. This finding was approved by the Economic and Financial Committee. Accordingly, the EU Commission has now opened the previously suspended gross amount of €810 million (which is equivalent to €714 million net of pre-financing).
What Is the Role of the RRF in Portugal’s Economic Recovery?
The European Commission’s (EC) Recovery and Resilience Facility (RRF) is a reaction to the COVID-19 pandemic that strives to help Portugal’s economy and society become more resilient and future-ready. The RRF will deliver Portugal with €22.2 billion in loans and non-repayable support in 10 instalments. The amount Portugal welcomes will depend on its progress in implementing the project, which includes investments and reforms. The EC will allow additional disbursements based on the plan’s milestones and targets.
Following the outstanding crisis caused by the COVID-19 pandemic, Portugal’s recovery and resilience plan has reacted to the urgent need to foster a strong recovery, while making Portugal’s economy and society more powerful and future-ready. In response to the energy market disruption driven by Russia’s invasion of Ukraine, the EU Commission also launched the REPowerEU Plan. The Recovery and Resilience Facility is at the core of its implementation and its allocation. Under REPowerEU, EU countries are revising their recovery and resilience plans with new efforts to save energy and diversify the EU’s energy supplies.
