Portugal can raise 1.8 billion from the EU for affected sectors

in News · 15-03-2020 16:00:00 · 0 Comments

Portugal may raise 1.8 billion euros in European funds to support sectors affected by Covid-19, in health or in small and medium-sized companies, within the scope of the 37 billion announced by the European Commission.

Due to the outbreak of the new coronavirus in the European Union (EU), the Community executive proposed to redirect 37 billion euros of European public investment to face the consequences, based on the option of Brussels to abdicate from complaining to Member States the reimbursement of unused pre-financing for the European structural and investment funds for 2019.

In all, the 27 Member States would have to repay the Commission with a total of EUR 7.9 billion of the pre-financing they received for 2019, this until the end of June this year, which is a liquidity reserve.

However, they will no longer have to do so, and will be able to reallocate their co-financing funds under these structural funds, which amount to EUR 29 billion, to the outbreak response.

In the case of Portugal, a total of around 1.8 billion euros is at stake to respond to the economic impacts of the Covid-19 outbreak, of which 405 million euros are due to non-repayment and the remainder (1,407 million euros) to the country's co-financing under the Structural Funds.

"In addition to mitigating the public finances of the Member States and supporting their health systems in time of need, this measure will also help them to accelerate their spending on financing unaffected cohesion policy", highlights the European Commission in the information released today, talking about “positive global effects for the economy”.


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