Centeno urges swift application of RRP funds

The Governor of the Bank of Portugal has called for the urgent application of RRP funds warning that Portugal runs the risk of missing the boat in terms of gaining a competitive edge and offsetting three years of “accumulated losses versus economic benefits” as a result of the pandemic and war in Ukraine.

“The accumulated loss faced by the Portuguese economy (because of the pandemic and war in Ukraine) in 2021 and 2022 has no precedent since the adoption of the euro”, states the Bank of Portugal in its October Economic Bulletin.
According to the institution which is lead by Mário Centeno, the best way of overcoming the squeeze faced by so many companies and families – and which will continue to be felt – is the “urgent” and “effective” application of RRP (Recovery and Resilience Programme) funds and fast-tracking the implementation of reforms tied in with their application”.
The Bank of Portugal stresses the importance of the loss of real revenue for the economy and that the “mechanisms of index-linked inflation should be reevaluated taking into account the importance of anchoring the expectations of players in line with the European Central Bank’s medium term objectives”.
The Bank of Portugal’s message echoes the opinion argued on various occasions by its governor Mário Centeno that support given to families and companies has to be made with great care and that any measures applied should be put into practice in coordination with European policies.
The government has recently announced a €2.4Bn raft of measures to support families and companies offset the impact of the energy crisis and inflation in a similar package of measures that other European countries have adopted.