Portugal wants loans from European bazooka, but only half of what it had admitted – European Union

The Recovery and Resilience Program (PRR) is already known, through which Portugal proposes to access the financing of European bazooka and which contemplates the use of 2.7 billion euros granted under favorable conditions by the Recovery Mechanism and Resilience (RRF), the instrument that absorbs the lion’s share of the 750 billion euros of the so-called European Union recovery fund (Next Generation EU).

The document was placed on public consultation this Tuesday and provides that Portugal will receive 13.9 billion euros of non-repayable grants and also recourse to 2.7 billion euros of loans granted by Brussels at low interest rates. .

In the first draft of the PRR sent to the European Commission, and first reported by Business, the Executive then admitted to use practically 4.3 billion euros of loans: 2.745 million to invest in public housing at affordable prices, 1.250 million to support companies and 300 million for the purchase of railway rolling stock. The Government now maintains the last two headings, but reduces the use of loans to finance social housing to 1,149 million euros. The possibility of using European bazooka loans has evolved over time. The Prime Minister, António Costa, started by saying that Portugal would try to “maximize” subsidies and “minimize” loans, but already during the presentation of the PRR priorities framed by António Costa Silva’s strategy, and, due to the high public debt national economy and the tendency to worsen due to the pandemic, ended up removing the use of Union credits.

However, the first draft of the PRR ended up contemplating the use of loans, and the Government has since maintained a dialogue with the European Commission with the intention of understanding whether or not this money will count for the purposes of accounting for public debt.

Business knows that this is not yet a closed dossier in Brussels, but, at least for now, within the Commission the expectation is that the loans will even weigh on the indebtedness of the Member States.

(News in update)

Source: Jornal de Negócios by www.jornaldenegocios.pt.

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