The future European Competitiveness Fund put forward by the European Commission during the negotiations on the new European Union multiannual budget will be the largest fund ever set up by the EU, claimed the Minister of Economy and Territorial Cohesion in a hearing in Parliament. 

Castro Almeida deems that this fund, which aims to foster investment in corporate or industrial projects is “decisive” for Europe to maintain and improve its positioning int he international context with regard to economic growth.  

Proposed by the EU executive, this new instrument will now have to be negotiated and approved by the European political institutions under the framework of the Union budget for 2028-2034.

Unlike the cohesion funds, where there are sums allocated to each country to invest in infrastructure, the Competitiveness fund, which will enter into force in 2028 is for Portuguese companies and universities that will have to associate and present productive investment projects in competition with other countries. 

Castro Almeida picked up on the Prime Minister’s words earlier this week and considered that “we must prepare the country to present its applications” in competition with entities and companies from central European countries.

The Minister recalled that these countries are much larger than ours and said “we must fight the problem of lack of size by engaging in partnerships with other countries, including those in central Europe int he field of innovation and competitiveness”. 

Otherwise, we run the risk of “a loss in the amount of funds Portugal may benefit from in the upcoming cycle” of 2028-2034.

Cohesion funds

As for the cohesion funds, the Minister explained that “we still do not know the amount Portugal will receive and even less so, what each region will get”.

Castro Almeida upheld however that in the next programming cycle, the funds must continue to bring the regions with lower incomes closer to those with higher incomes.

Therefore, “the interior must have more investment” than the more developed coast, “offering full priority to the 81 municipalities that lost more than 5% of their population between the last two census reports, some which lost 15%”, he noted.