Europe Union supports Portugal 45 billion Euro to recover the economy

  • 28 January, 21

To address the biggest crisis since World War II, the European Union has released itself with a new ‘Marshall Plan’, an economic recovery package worth 1.8 trillion euros, with more than 45 billion euros was allocated to Portugal.

This package combines a multi-year budget for the period 2021-2027 of € 1.07 trillion and the ‘NextGenerationEU Recovery Fund’ of 750 billion euros.

The adoption of this financial ‘bazooka’ makes more sense as the Recovery Fund is funded by the European Commission on behalf of 27 countries, and more than half of the money (€ 390 billion) earmarked for the member states as non-repayable loans.

However, the road to this ‘bazooka’, which before the pandemic was unthinkable given the strong resistance of several member states to joint debt issuance and subsidies, was winding, and the final agreement was only closed this month when the 27 overcame the last obstacle on the road.

For Portugal, €30 billion of the budget has been earmarked for the next seven years, plus €15.3 billion in grants, with the possibility for the country to borrow more if it so wishes.

The creation of social responses, with investment in the country’s national health service (SNS) and housing, and the promotion of employment through more investment and skills are the Portuguese government’s priorities for the fund.

Source: Econews

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