Portugal locks in €16.3 billion in EU grants under post-pandemic plan

LISBON, Aug 28 (Reuters) – Portugal has completed all 44 reforms required by Brussels under its post-pandemic recovery plan to qualify it for €16.3 billion ($18.98 billion) in EU grants available to fund more than 100 projects, its economy minister said on Friday.

• Portugal was allocated €21.9 billion under the EU’s €750 billion NextGenerationEU post-pandemic recovery programme launched in 2021, including €16.3 billion in grants and €5.6 billion in loans.

• Its recovery plan provides funding for 117 investment projects, conditional on the implementation of 44 reforms covering housing, healthcare, education, public administration, energy and the digital transition.

• To secure EU funds, member states must complete Brussels-mandated reforms by Monday.

• Economy Minister Manuel Castro Almeida told a news conference that Portugal had “fully implemented the planned reforms and met all of the plan’s milestones and targets, securing the full €16.326 billion in grants”.

• “It would have been disastrous for the country if we had missed this opportunity,” he said, adding that the plan’s loan component was also expected to be fully utilised.

• Since its launch in 2021, Portugal’s recovery plan has been revised several times, with projects deemed unlikely to meet Monday’s deadline replaced by others capable of being completed on time.

• Castro Almeida said many of the projects removed from the plan would now be financed through other EU funds, the European Investment Bank and the state budget.

($1 = 0.8590 euros)

(Reporting by Sergio Goncalves; Editing by Jan Harvey)