Government Revises Recovery Plan Downwards
Portugal aimed to tackle serious issues with European aid from the Recovery and Resilience Plan (PRR), but some of these problems will now have to be funded through other means. The government has just proposed to the European Commission a cut of 311 million euros—funds from loans that the country is forgoing—and a new list of investments, including major works and acquisitions, that, according to the executive, Portugal cannot complete and verify by August 31, 2026.
Key Areas Affected by the Cuts
- Education: The Wi-Fi network for schools has been removed from the PRR.
- Healthcare: Thousands of vacancies in the National Health Service (SNS) have been dropped.
- Social Support: Significant reductions in investments for nursing homes and daycare centers.
- Transport: The Lisbon Metro project is out, and the Porto Metro loses support for one station.
Shift in Focus
In this revision, the government is reinforcing investments in businesses, indicating a strategic pivot away from public services. This move raises concerns about how these essential services will be maintained or improved without PRR backing.








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