In view of the serious impacts of the pandemic on European economies, a strategic instrument to mitigate the economic and social impact of the crisis (RRP) was created, capable of promoting economic convergence and resilience, helping to ensure long-term sustainable growth and to meet the challenges of the transition to a greener and more digital society.
The Recovery and Resilience Plan (RRP) brings together a strategic vision, reforms and structuring investments to be implemented until 2026, in order to promote a transformative, lasting, fair, sustainable and inclusive recovery and evolve towards a more sustainable and more digital country.
Overall, this will be the biggest stimulus package ever financed from the EU budget.
Portugal will have 61 billion euros for its post-pandemic recovery and economic upturn, with a special focus on three investment instruments:
|Portugal 2020 reprogrammed||11.2 billion euros|
|Recovery and Resilience Plan (RRP)||16.6 billion euros|
|Portugal 2030 (Multiannual Financial Framework)||33.6 billion euros|
The Portuguese Recovery and Resilience Plan is a national application programme, with an execution period until 2026, which will implement a set of reforms and investments that will enable the country to resume sustained economic growth, reinforcing the goal of convergence with Europe over the next decade.
The European Council, faced with the serious impacts of the pandemic on European economies, created the Next Generation EU, a strategic instrument to mitigate the economic and social impact of the crisis, capable of promoting economic convergence and resilience, helping to ensure long-term sustainable growth and to meet the challenges of the transition to a greener and more digital society. It is from this temporary recovery instrument that the Recovery and Resilience Mechanism, where this RRP fits, is developed.
The RRP is an investment plan for all Portuguese people, which will prepare the country for the future and is organised around three structuring dimensions.
These 3 structuring dimensions are materialised in 20 components, 37 reforms and 83 investments, which will be implemented following the principle of orientation towards results based on milestones and targets.
Reforms and investments total 16,644 million euros, broken down into 13,944 million euros in grants (84% of the total) and 2,700 million euros in loans (16%).
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The Resilience dimension is associated with an increase in the capacity to react to crises and to overcome the current and future challenges associated with them. This dimension arises to promote a transformative, lasting, fair, sustainable and inclusive recovery, being understood in the context of RRP in all its aspects: social resilience, economic and productive fabric resilience and territorial resilience.
In the Resilience dimension, 9 Components were considered in order to strengthen the social, economic and territorial resilience of our country. These components include a robust set of interventions in strategic areas, namely health, housing, social responses, culture, innovative business investment, qualifications and skills, infrastructure, forestry and water management.
The Climate Transition dimension results from Portugal’s commitment and contribution to the climate targets that will enable the achievement of carbon neutrality by 2050. The decarbonisation of the economy and society offers important opportunities and prepares the country for the realities that will configure the competitiveness factors in the near future.
In the Climate Transition dimension, 6 Components were considered with intervention in strategic areas such as the sea, sustainable mobility, decarbonisation of industry, bio-economy, energy efficiency in buildings and renewable energies.
Regarding the principle of climate integration, the Portuguese RRP meets the threshold of its global investment with allocation to climate transition objectives, reaching 38%.
In the Digital Transition dimension, significant reforms and investments are planned in the areas of digitalisation of companies, the state and in the provision of digital skills in education, health, culture and forest management.
To ensure that Portugal accelerates the transition to a more digitalised society, the national options in the RRP are based on 5 components in the following areas: empowerment and digital inclusion of people through education, training in digital skills and promotion of digital literacy, digital transformation of the business sector and digitalisation of the State.
The measures to support digital objectives represent an amount that represents 22% of the total allocation of the plan, exceeding the threshold of 20% set by European regulations: 12 of the 20 components of the RRP have a direct contribution digital target.
FI Group has a team of professionals specialised in the most diverse areas, with a vast experience regarding EU funds. Our team works closely with the financial system, with public and private clients and supports the development of economic and commercial strategies, in Portugal and abroad.
With the emergence of the RRP and with a view to providing a service that is closer to our clients, the R&R Hub was created, consisting of a multidisciplinary team that has been monitoring all the news that has arisen in this area. The aim is for Fi Group to provide its clients with the best advice, identifying relevant investments for their business and analysing their possible inclusion in the co-financing opportunities offered by EU funds.
This component aims to strengthen the capacity of the National Health Service (NHS) to respond to the demographic and epidemiological changes in the country, to therapeutic and technological innovation, to the trend towards increasing health costs and to the expectations of a more informed and demanding society.
In terms of Housing, the aim is to relaunch and reorientate housing policy in Portugal, safeguarding housing for all, by reinforcing the public housing stock and rehabilitating the undignified housing of lower income families, in order to promote generalised access to adequate housing conditions.
Under this component, the intention is to strengthen, adapt, requalify and innovate the social responses aimed at children, older people, people with disabilities and families, with a view to promoting birth rates, active and healthy ageing, inclusion and the promotion of autonomy and conciliation between professional activity and personal and family life, and social and territorial cohesion. It also aims to promote an integrated intervention in disadvantaged communities, with a view to combating poverty.
The general objective of this component is to value arts, heritage and culture as elements of identity affirmation, of social and territorial cohesion and of the increase of the economic competitiveness of regions and of the country through the development of cultural and social activities of high economic value.
Increase the competitiveness and resilience of the economy based on R&D, innovation, diversification and specialisation of the productive structure. Capitalise economically viable companies before the outbreak of the economic recession caused by the pandemic and encourage productive investment in areas of strategic national and European interest.
Increase the responsiveness of the education and training system to combat social and gender inequalities and increase the resilience of employment (in situations of economic crisis such as the one caused by the pandemic), especially of young people and adults with low qualifications, as well as a balanced participation of women and men in the labour market.
To strengthen resilience and territorial cohesion, by increasing the competitiveness of the productive fabric and allowing for a reduction in context costs.
To develop a structural response in the prevention and fighting of rural fires capable of protecting Portugal from serious rural fires in a context of climate change, and with a lasting impact on resilience, sustainability and territorial cohesion.
Water management is a strategic area of intervention given the need to mitigate water scarcity and ensure the resilience of the Algarve, Alentejo and Madeira, the regions with the greatest need for intervention in Portugal, to drought episodes, based on climate change scenarios and the perspective explained in the National Strategy for Adaptation to Climate Change (ENAAC) and the Climate Change Action Programme (P-3AC), contributing to the diversification of economic activity in these regions and to their economic, social and environmental development.
This component aims to develop a structural, lasting and impactful response preparing the way for the construction of a more competitive, more cohesive and more inclusive economy of the sea, but also more decarbonised and sustainable, with a greater capacity to take advantage of opportunities arising from the climate and digital transitions. Aligned with these principles, the Sea component will contribute to the national options related to the reinforcement of the national productive potential, seeking to guarantee conditions of sustainability and competitiveness of the business fabric linked to the sea, as well as assuming the ambition of combating some of the pockets of poverty located in coastal communities, and ensuring a territory simultaneously competitive and cohesive in a context of adaptation to climate and digital transitions. At the level of preserving the value of ocean ecosystem services, this component will unequivocally contribute to “Ocean Health”. In addition, it will contribute to the strengthening of the country’s operational, training and scientific capacity.
This component aims at decarbonising the industrial and business sector and promoting a paradigm shift in the use of resources, implementing measures of the National Energy and Climate Plan 2030 (PNEC), constituting a central strategic objective in the RRP, in the sense that it contributes to accelerating the transition to a carbon-neutral economy and, at the same time, to promoting the competitiveness of industry and companies through decarbonisation, reduction of energy consumption and promotion of endogenous energy sources.
This component aims to develop the necessary initiatives for a paradigm shift to accelerate the production of high value-added products from biological resources (as an alternative to fossil-based materials). Through a transition towards a sustainable bioeconomy it is possible to support the modernisation and consolidation of industry through the creation of new value chains and greener industrial processes, thus presenting an opportunity for the whole of Europe.
Bioeconomy (145 M€)More information
This component aims to rehabilitate and make buildings more energy efficient, enabling the achievement of multiple objectives, providing numerous social, environmental and economic benefits for people and companies.
Promoting energy transition through the support of renewable energies, with great focus on the production of hydrogen and other gases of renewable origin and, in the context of the Autonomous Regions, of energies from renewable sources. Consequently, to foster economic growth and employment through the development of new industries and associated services, as well as research and development, accelerating technological progress and the emergence of new technological solutions, with high synergies with the business fabric and to reduce national energy dependence, either through the production of energy from endogenous sources, either through the direct use of hydrogen, or through the indirect use (e.g.: green ammonia), and thus significantly contribute to improving the trade balance and strengthening the resilience of the national economy.
Ensure the development of robust projects, with a strong contribution to the improvement of public transport systems, which promote the strengthening and increasing use of public transport with the consequent reduction of dependence on individual road transport, which promote the decarbonisation of the transport sector, and which have an important contribution to the recovery of the economic and social effects resulting from the pandemic crisis, particularly in terms of employment.
This component, specifically directed to the reinforcement of companies’ digitalisation, aims at catching up with the digital transition process, allowing access to knowledge and to digital technological means that promote the modernisation of work and production processes; the dematerialisation of workflows; the mitigation of skills deficits in the use of digital technologies; to cover women and men in a balanced way; the incorporation of teleworking tools and methodologies; the creation of new digital channels for marketing products and services, the adoption of a culture of experimentation and innovation, the strengthening of the national entrepreneurship ecosystem and the incorporation of disruptive technologies in their companies’ value propositions.
The main objectives of this component are the modernisation and simplification of public financial management, thus promoting a structural and fundamental change to increase the quality and sustainability of Portuguese public finances.
Strengthen and make more efficient the relations of citizens and companies with the State and reduce the burdens and complexities that inhibit business activity and thus impact on productivity. The aim of this component is to reduce the administrative and regulatory burden faced by companies, by reducing sectoral obstacles to licensing and increasing the efficiency of the Courts.
Provide a better public service, using technology and reinforcing proximity for simpler, safer, more effective and efficient access for citizens and companies, reducing context costs, as well as promoting the efficiency, modernisation, innovation and empowerment of the Public Administration, reinforcing the contribution of the State and the public administration to economic and social growth and development.
The main goal of this component is to create conditions for educational and pedagogical innovation through the development of skills in digital technologies, their transversal integration in the different curricular areas and the modernisation of the Portuguese education system.