Political Uncertainty: Will Portugal's Recovery Plan Stay on Track?

Political Stability and the Recovery Plan

The Monitoring Committee for the Recovery and Resilience Plan stated today that despite the recent collapse of Luís Montenegro's Government, the execution of the plan should not be affected. However, they emphasized the need for prompt decision-making.

Pedro Dominguinhos, President of the National Monitoring Committee for the Recovery and Resilience Plan (CNA-PRR), mentioned, "In the next two months, we will experience a period of political uncertainty. Regardless of this situation, which always creates some entropy, there are instruments available for the caretaker government to approve necessary measures for the effective execution of the PRR."

Current Discussions and Funding Requests

The reprogramming of the PRR, which was recently presented, is currently under discussion in Brussels, while the sixth payment request is being evaluated. For the seventh disbursement request, evidence is being gathered to establish a timeline.

According to the Monitoring Committee, it will be up to the caretaker government to decide whether there is enough time to collect this data or if it will fall to the next administration.

Maintaining Investment Momentum

Dominguinhos expressed optimism that even in scenarios of political instability, the execution of the PRR can remain unaffected. He urged that ongoing investments should continue and even be accelerated, with preparations for planned investments to be made so they can be launched once the reprogramming is approved.

Call for Timely Decisions

The committee made a plea for timely decision-making and for public administration bodies to continue their decision-making processes. If the reprogramming is approved during this period, it is crucial to start preparing tenders for new investments and to allow for applications to be submitted.

Government Collapse

The Assembly of the Republic today rejected the confidence motion put forth by the government, leading to its resignation. The motion saw opposition from the PS, Chega, BE, PCP, Livre, and the lone PAN deputy, Inês Sousa Real, while the PSD, CDS-PP, and Iniciativa Liberal voted in favor.

According to the Constitution, the rejection of a confidence motion necessitates the resignation of the government. Luís Montenegro's executive is now in caretaker mode, limited to strictly necessary or urgent actions to continue its activities.