EU Commission endorses positive preliminary assessment of Portugal’s second request for €1.8bn disbursement under the Recovery and Resilience Facility
The European Commission has today endorsed a positive preliminary assessment of Portugal’s payment request for €1.8 billion of grants and loans under the Recovery and Resilience Facility (RRF), the key instrument at the heart of NextGenerationEU.
On 30 September 2022, Portugal submitted to the Commission a payment request based on the achievement of the 20 milestones and targets indicated in the Council Implementing Decision for the second instalment. They cover reforms in the areas of management of public hospitals and the digital transition in the private and public sectors. Several milestones and targets also concern major investments in the areas of health, forestry, water management, social protection, innovation, sustainable mobility, digital skills, culture, public finances and public administration.
With their request, the Portuguese authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 20 milestones and targets. The Commission has thoroughly assessed this information before presenting its positive preliminary assessment of the payment request.
The Portuguese recovery and resilience plan includes a wide range of investment and reform measures in 20 thematic components. The plan will be supported by €15.5 billion in grants and €2.7 in loans, of which €2.2 billion was disbursed to Portugal in pre-financing on 3 August 2021 and €1.16 billion under the first payment request on 9 May 2022.
Payments under the RRF are performance-based and conditional on Member States implementing the investments and reforms outlined in their respective recovery and resilience plans.
Next steps
The Commission has now sent its positive preliminary assessment of Portugal’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within a maximum of four weeks, should be considered in the Commission’s assessment. Following the EFC’s opinion, the Commission will adopt the final decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of the decision by the Commission, the disbursement to Portugal can take place.
The Commission will assess further payment requests by Portugal based on the fulfilment of the milestones and targets outlined in the Council Implementing Decision, reflecting progress on the implementation of the investments and reforms.
The amounts disbursed to the Member States are published in the Recovery and Resilience Scoreboard, which shows progress of the implementation of the national recovery and resilience plans.
President of the European Commission Ursula von der Leyen said:
“I am delighted to announce good news to Portugal today. We believe that Portugal has conducted the necessary reforms and investments to receive an important payment from our NextGenerationEU recovery plan. Portugal is for instance investing in public transport and has put in place measures that will strengthen workers’ digital skills. Once Member States give their green light, we will pay €1.8 billion to Portugal. So well done Portugal!”
For More Information
Question and Answers on Portugal’s disbursement request under NextGenerationEU
Press release on € 2.2 billion in pre-financing to Portugal
Question and Answers on Portugal’s recovery and resilience plan
Factsheet on Portugal’s recovery and resilience plan
Revised Annex to the Council Implementing Decision
Recovery and Resilience Facility
Recovery and Resilience Scoreboard
Recovery and Resilience Facility Regulation
Question and Answers on the Recovery and Resilience Facility
Quotes
I am delighted to announce good news to Portugal today. We believe that Portugal has conducted the necessary reforms and investments to receive an important payment from our NextGenerationEU recovery plan. Portugal is for instance investing in public transport and has put in place measures that will strengthen workers’ digital skills. Once Member States give their green light, we will pay €1.8 billion to Portugal. So well done Portugal!
Another step forward for Portugal as it fulfils the next 20 milestones and targets set out in its recovery and resilience plan – congratulations. On the green transition, Portugal is pressing ahead with support programmes for the bio-economy and sustainable transport, as well as investing in fire prevention and forest management. It is developing a digital land registry platform, modernising tax declarations, and working to strengthen digital skills in its workforce. Along with projects to strengthen social facilities, tackle poverty and social exclusion, Portugal is also taking steps to provide capital to viable local companies. Once the Commission’s assessment is reviewed and approved by Member States, Portugal should receive €1.8 billion of grants and loans to help make its economy more inclusive and resilient.
Today we take another key step in the implementation of Portugal’s recovery and resilience plan. Our positive preliminary assessment of the second payment request will pave the way, once all the necessary procedures are finalised, for a disbursement of €1.8 billion to Portugal early next year. This conclusion is a recognition of the progress Portugal has made with key investments and reforms – including to improve skills, boost digitalisation, protect the environment and adapt to the impacts of climate change. All further evidence of the successful partnership between the EU and Portugal made possible by NextGenerationEU!
Q&A: Portugal’s disbursement request under NextGenerationEU
Brussels, 16 December 2022
How did the Commission assess Portugal’s second payment request?
On 30 September 2022, Portugal submitted to the Commission a request for the disbursement of €1.8 billion under the Recovery and Resilience Facility (RRF). The request was based on the achievement of the 20 milestones and targets for the second instalment, as outlined in the Council Implementing Decision approving the plan. They cover reforms in the areas of management of public hospitals and the digital transition in the private and public sectors. Several milestones and targets also concern major investments in the areas of health, social protection, forestry, water management, innovation, sustainable mobility, digital skills, culture, public finances and public administration. In line with the RRF Regulation, the Commission has up to two months to carry out its preliminary assessment of the request.
With their request, the Portuguese authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 20 milestones and targets. The Commission has thoroughly assessed this information before endorsing the positive preliminary assessment of the payment request.
What are the next steps?
The Commission has now sent the positive preliminary assessment of Portugal’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within maximum four weeks, should be taken into account in the Commission’s assessment. The Commission will adopt the decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of this decision by the Commission, the disbursement to Portugal would take place. The amounts disbursed to the Member States will be published in the Recovery and Resilience Scoreboard. The Commission has also shared its positive preliminary assessment with the European Parliament.
How do the milestones and targets achieved by Portugal so far effectively support the green transition?
In this payment request, the green transition is supported by specific investments, such as the development of bio-economy technologies, the construction of a Bus Rapid Transit line in Porto to renew and decarbonise the public transport, and the development of sustainable agriculture in the Azores. Climate change adaptation is also a clear focus with fire prevention and forest and water management investments. Steps are also taken with a digital land-registry platform simplifying the cadastral information system entering into production, which is essential for planning, managing and supporting decisions on the territory’s occupation and use.
How do the milestones and targets achieved by Portugal so far effectively contribute to the digital transition?
The second payment request includes various measures supporting the digital transition, such as the development of a digital land registry platform, the digitalisation of cultural facilities, the modernisation of tax declarations, programmes aimed at strengthening the digital skills of the employed workforce, and the implementation of a secure mobile communication system for government employees. The second payment request also includes the review of the formative content included in the National Qualifications Catalogue specifically relating to digital skills for use in a professional context, and the reform on the creation of digital signatures and seals, thus paving the way for the integration of digital solutions in Portuguese businesses.
How do the milestones and targets achieved by Portugal so far contribute to improving Portugal’s economic and social situation, and its resilience?
Portugal implemented several milestones that are part of important social and economic investments and reforms. With respect to healthcare, the second payment request includes measures to upscale the networks of palliative and integrated continued care, as well as home-based care, and to improve the management of public hospitals. Other measures are improving the social resilience of Portugal such as the strengthening of the network of social facilities, and far-reaching projects to combat poverty and social exclusion in Lisbon and Porto. Finally, the second payment request includes measures related to the national promotional bank, Banco Português de Fomento, which will help to provide capital to viable Portuguese companies.
Does the achievement of the second batch of milestones and targets contribute to an effective implementation of the Plan?
The milestones and targets fulfilled constitute significant steps in the implementation of Portugal’s recovery and resilience plan, and of its broader reform agenda as many contain important legislative steps paving the way for reforms and investments planned for the later implementation stages of the plan. These include steps relating to Portugal’s national promotional bank, Banco Português de Fomento, which will help to provide capital to viable Portuguese companies. The second payment request also includes a crucial step towards strengthening the quality and sustainability of public finances with a new management contract template that should increase the performance, responsibility and accountability of public managers of state-owned enterprises in the health system coming into force.
For More Information
Press release on €2.2 billion in pre-financing to Portugal
Question and Answers on Portugal’s recovery and resilience plan
Factsheet on Portugal’s recovery and resilience plan
Revised Annex to the Council Implementing Decision
Recovery and Resilience Facility
Recovery and Resilience Scoreboard
Recovery and Resilience Facility Regulation
Question and Answers on the Recovery and Resilience Facility