NextGenerationEU: Portugal submits request to revise recovery and resilience plan and add a REPowerEU chapterImage by vwalakte on Freepik
Today, Portugal submitted a request to the Commission to modify its recovery and resilience plan, to which it also wants to add a REPowerEU chapter.
Portugal‘s proposed REPowerEU chapter includes 6 reforms and 18 investments, focusing on energy efficiency in buildings, renewables and biogas, sustainable transport, the electricity grid and green industry, i.e., supporting the production of climate technologies such as wind turbines, photovoltaic panels and heat pumps.
In addition, Portugal also proposes to include 31 new or scaled up investments and 5 new reforms. These relate to the simplification of the tax benefit and social benefit systems, incentives for circular economy and further enhancing digital access to public services.
Portugal‘s request to modify its plan is based on the need to factor in the effects of supply chain disruptions and the very high inflation experienced in 2022. It also follows the upward revision of its maximum RRF grant allocation, from €13.9 billion to €15.5 billion, representing an increase of around €1.6 billion. The revision is part of the June 2022 update to the RRF grants allocation key.
Portugal also requested €3.2 billion in additional loans. REPowerEU grants for Portugal amount to €704 million. In addition, Portugal requested to transfer the totality of its share of the Brexit Adjustment Reserve, amounting to €81 million, to its recovery and resilience plan. These funds make the submitted overall modified plan worth €22.2 billion.
The Commission now has up to two months to assess whether the modified plan fulfils the assessment criteria in the RRF Regulation. If the Commission‘s assessment is positive, it will make a proposal for an amended Council Implementing Decision to reflect the changes to the Portuguese plan. Member States will then have up to four weeks to endorse the Commission’s assessment.