Lisbon, April 6, 2026 (Lusa) - Portugal’s head of the Recovery and Resilience Plan (RRP, EU-funded post-pandemic investment programme) task force said the country would execute 100% of the European recovery fund without losing money, despite critical areas like housing.
"I am sure we will implement 100% of the plan," Fernando Alfaiate said in an interview with Lusa on Monday. He said the current 61% execution rate reflects milestones and targets up to the eighth payment request, which the European Commission certified and paid.
The ninth and tenth payment requests include many milestones, which should trigger a surge in the 'bazooka' (a large-scale economic stimulus package) implementation to reach 100%. To achieve this and accommodate the impact of bad weather, Portugal presented a RRP review to Brussels last Tuesday, reallocating €516 million.
Projects like the Braga surface metro and the one-stop shop for renewable energy licensing were excluded because execution is impossible by late August.
Storms in January and February forced adjustments to education, housing, and health infrastructure investments.
The government revised the RRP schedule, advancing some targets and delaying others, resulting in €516 million in adjustments between the ninth and tenth payment requests.
However, the mission president said some reforms still cause concern. Although they lack specific investment, failures could trigger a penalty of about €500 million.
He cited social security reform as an example, noting its simplification and methodology must be finalised by the 10th payment request.
"As this legislative process passes through several stages, it always causes concern because I cannot control it," he said.
Regarding investments, he said "there is a lot of work to do," including a goal to build 31,000 homes by August.
While indicators suggest the goal is achievable, he highlighted the need to collect evidence, such as work completion reports or energy certificates, for each house.
The European Commission set 31 August as the legal deadline to meet all RRP milestones, a mandatory condition for member states to receive disbursements.
This date is not the financial execution limit, though it marks the end of targets such as construction work, certifications, or equipment deliveries.
Brussels warned member states from the start that this deadline would not change.
However, Portugal secured a "flexibility effort," allowing projects in areas hit by storms early this year to be resized.
For example, of the 492 health units planned, 400 should have completion reports by the end of August. The remaining 92 saw their funding and costs reduced.
Some payments will occur in 2027 since the final disbursement should happen in late 2026.
PE/LYT // ADB.
Lusa
