Portugal Boosts SME Financing with InvestEU Decree, Aims for €372 Billion in Investments by 2027

May 20, 2025
Portugal Boosts SME Financing with InvestEU Decree, Aims for €372 Billion in Investments by 2027
  • InvestEU-Portugal is considered essential for Portuguese companies to make necessary investments in competitiveness, innovation, digitalization, and sustainability.

  • The government emphasizes that InvestEU-Portugal is crucial for enhancing the competitiveness, innovation, digitalization, and sustainability of Portuguese companies.

  • This initiative will enable small-to-medium capitalization companies to access bank financing on more favorable terms, as highlighted by the government led by Luís Montenegro.

  • The measure aims to reduce financing barriers, particularly in situations of market failures and uncertainties regarding investment returns.

  • The decree outlines the State's participation in the InvestEU-Portugal program, which is recognized as the largest risk-sharing instrument currently available in the European Union.

  • On May 19, 2025, the Portuguese Council of Ministers approved a decree-law aimed at improving access to bank financing for micro, small, and medium enterprises (SMEs) as part of the Recovery and Resilience Plan (PRR).

  • The overarching goal of the InvestEU Program is to support financing operations that enhance overall competitiveness.

  • InvestEU is a strategic European initiative designed to provide long-term financing, facilitating access to funding for businesses and fostering their global competitiveness.

  • The InvestEU program is projected to mobilize over €372 billion by 2027 in both private and public funds to support sustainable investments aligned with the EU's strategic priorities.

  • This initiative is deemed urgent for the execution of the PRR, as stated in the Council of Ministers' communication.

Summary based on 2 sources


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