EU funding under the new 2014-2020 National Strategic Reference Framework (NSRF) will focus investment on creating employment and stimulating the economy, with issues of social support coming to the fore. The Algarve region is expected to receive a small percentage of the total funds for Portugal.
Portuguese companies will be assisted under a new strategic programme, entitled ‘Portugal 2020’, following the same lines of social support and marking a changing point for the country as, over the last six years, investment has been predominantly for the construction of infrastructures, such as roads or schools.
The Algarve, however, appears to be bottom of the priority list to receive support.
A report in Público newspaper suggests that the Algarve will receive under 7% of the total funds. The North, Centre and Alentejo regions and the Azores Islands will be the main beneficiaries, receiving 93% of the funds allegedly as they are considered the “poorest” areas.
‘Portugal 2020’ will provide the government with €21 billion over the next six years.
Miguel Poiares Maduro, Minister in the Cabinet of the Prime Minister and for Regional Development, said that one of the fundamental and strategic changes lies in the boost of structural funds from the European Social Fund from 36.5% to 41%.
Consequently, this entails a decrease of support from the European Regional Development Fund, from 63.5% to 59%. He believes this represents an investment in people and their development and a drop in the investment of infrastructures.
The Secretary of State for Regional Development Manuel Castro Almeida has also come out in support of the new ‘Portugal 2020’ plan and stated that the time for investment in infrastructures, schools and public roads has passed and now it is time to stimulate the economy by encouraging the creation of jobs and supporting companies and people.
Although the plan has only just been presented, the government had already hinted at a change in strategy by saying that the priority in a receding economy should be small and medium-sized companies and employment.
Prime Minister Pedro Passos Coelho said in August: “For the first time since the granting of Community funds, our focus will fall on companies, especially small and medium-sized enterprises. In other words, the new NSRF will be aimed at creating wealth and sustainable employment.”
Mota Soares, Minister for Solidarity, Employment and Social Security, had also revealed two months ago that future Community funds would be directed towards fighting unemployment.
