Lisbon, April 30, 2026 (Lusa) – Portugal has four outstanding reforms to complete under the Recovery and Resilience Plan (PRR) by 30 September, or it risks losing €1.5 billion, the monitoring commission warned on Thursday.
"Four reforms remain unfulfilled, with a significant financial impact. If we do not complete them, we will not receive the money," said Pedro Dominguinhos, president of the National Monitoring Commission for the RRP (CNA-RRP), he told journalists during the presentation of the organisation's latest report.
The penalty could reach approximately €1.5 billion. Some of these reforms, such as the simplification of social benefits, require parliamentary approval and may involve consulting social partners.
Dominguinhos said that Portugal remains "on track" as these reforms are formally due by 30 September under the 10th RRP payment request. However, he said that Portugal’s only previous penalties occurred during the third and fourth payment requests, involving reforms to professional associations and the health sector.
The European Commission deemed one reform formally unfulfilled just as it was due for publication in the official government gazette, according to the president of the CNA-RRP.
"There is no six-month period after the fact to fulfil reforms. We are within the timeframe to implement them, but it is challenging," he said.
Portugal's RRP includes 37 investments currently in a "worrying" or "critical" state, such as affordable housing, according to the National Monitoring Commission’s latest report presented on Thursday.
The sixth RRP monitoring report, covering June 2025 to March 2026, analysed data from 127 investments.
Of these, authorities classified 21 as "worrying" and 16 as "critical." Meanwhile, 34 are "aligned with planning" and 20 "require monitoring." Additionally, 23 investments are complete, eight were withdrawn, and five were not monitored.
Critical projects include public affordable housing, the national emergency temporary accommodation pool, and the modernisation of hospital areas and equipment.
The list features the national networks for integrated continuous care and palliative care, expanded primary healthcare services, and a new generation of social responses and equipment, including new or rehabilitated schools.
The RRP aims to implement reforms and investments to restore economic growth. Besides repairing damage caused by Covid-19, the plan intends to support investment and generate employment.
PE/RYOL // ADB.
Lusa
