Portugal Boosts SME Financing with InvestEU Decree, Aims for €372 Billion in Investments by 2027
May 20, 2025
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