Portugal decided to reallocate 2,541 million euros in cohesion policy funds, out of a total of 22,602 million euros allocated to the country for the period 2021–2027, mainly towards new economic competitiveness and housing priorities.
The information was released by the European Commission, in Brussels, as part of the mid-term review of the investment strategy created to reduce inequalities between regions and promote balanced development in all European Union (EU) countries.
As regards Portugal, 22,602 million euros were allocated in cohesion policy funds for the period 2021–2027 and, with this mid-term review, “2,541 million euros were reallocated to new priorities”, specifies the community executive.
The largest share of reallocation concerns Portugal’s economic competitiveness (1,230 million euros), followed by other priorities such as housing (656 million euros), water resources (524 million euros), defense (114 million euros) and energy (18 million euros).
In total, nine out of 11 total programs were changed, seven of which were regional and two national.
Across the EU, 34.6 billion euros of cohesion policy funds (2021–2027) were reallocated to respond to urgent strategic priorities, with the main objectives being to strengthen competitiveness and innovation, improve defense and civil preparedness, promote affordable and sustainable housing, increase water resilience and strengthen energy security and energy connections, according to the European Commission.
This represents around 10% of the total €367 billion cohesion policy budget and translates into €15.2 billion for competitiveness, innovation and skills, €11.9 billion for defence, military mobility and civil preparedness, €3.3 billion for affordable housing, €3.1 billion for sustainable water management and €1.2 billion for energy and decarbonisation.
It was due to geopolitical changes that, last year, the institution encouraged countries to reprogram investments, with changes being approved to 186 programs in 25 countries.
The review of the European Union’s cohesion policy makes it possible to adjust the way in which European funds are used, ensuring that they respond to the needs of Member States.
In the period 2021–2027, this mid-term review is related to geopolitical, economic and energy changes, leading the EU to redirect investments towards priorities such as competitiveness, defense, energy transition and resource resilience.
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