Response to the pandemic. The government applies subsidies and discards loans



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António Costa began by recalling that the pandemic was not only a health challenge for everyone, but also a “great challenge for the European Union”, leading many to question whether the EU “is up to the challenge.” . But for the prime minister, “the European Union, in this crisis, responded as it had never responded to previous crises and demonstrated, from the first hour, to be up to the needs.

At the presentation session of the Recovery and Resilience Plan, the Prime Minister said that the country will make full use of subsidies from the European Union, but only intends to use loans when the economic situation in Portugal improves.


We have a very high public debt and we have to come out of this crisis not only stronger from an economic and social point of view, more modern and greener, but also more solid from a financial point of view. We will make full use of the grants and we will not use the part in loans as long as the financial situation of the country does not allow it “said Costa, who believes that loan recovery would require a greater effort for countries entering this crisis with high public debt, such as Portugal, and the use of loans would explode future debt.

“Recovering does not mean going back to where we were. We have to come out of this crisis stronger, more resilient”, he stated. “It is a plan that cannot be limited to responding to the crisis, but also to preventing future crises”he said.

The Prime Minister also said that Portugal wants to be one of the first countries to agree with its European Commission on its Recovery and Resilience Plan, saying that the country “must be at the forefront.”

António Costa assumed this objective in a conference that took place at the Champalimaud Foundation, in Lisbon, after the President of the European Commission, Ursula von der Leyen, presented the European Union Recovery Plan before an audience of numerous ministers and secretaries of state, mayors, representatives of regional governments, social partners and directors of Portuguese academic institutions.

We want to be one of the first countries to close the agreement with the European Commission. We want to do it because we want to be at the forefront in this work for the resilience and recovery of Europe “, justified.

António Costa said that his government’s schedule is to approve the country’s Recovery and Resilience Program on October 14, delivering the first day, the 15th, the first drought The European Commission.

For António Costa, it is essential that Portugal put itself “in the front line”, because the country’s recovery must also be the first priority.

“At the same time that we have to control the pandemic, we have to be able to recover our economy, protect employment, recover lost jobs, and recover lost income. We have to recover the path of convergence that we had with the European Union “, Held.

Portugal faces “a crucial challenge” for the future, according to Costa. “We have to face this challenge with the conviction that recovering is not going back to where we were”, wrinkled.

“Our ambition cannot be to reach the end and be where we were in February of this year. We have to come out of this crisis stronger, more resilient from a social point of view, productive potential and territorial competitiveness ”., Held.

According to the executive leader, if Portugal accelerates the climate and digital transition processes, “it will be a more prosperous country, with better conditions for the new generation.”

And it is for the new generation that this European Union plan was designed “He added, in a speech in which he also reiterated the praise he had made, the day before, to the mandate of Ursula von der Leyen as president of the European Commission.

In addition to the economic recovery program, the European Commission, during the Portuguese presidency of the Union, which begins in January 2021, will initiate the debate on the implementation of the pillar of social rights in the European Union, starting with the presentation at the beginning of the year . an action plan, discussed later in May at a conference in Porto.

“This action plan should reinforce citizens’ confidence in this change. People are afraid of this change, of losing their jobs, with robotization, automation. This fear undermines confidence in the future and fuels populist drifts “said António Costa.

“The best way to fight fear is to give people confidence in their ability”, He said. “We cannot stop development, we must make sure it is done in solidarity, with everyone”, he said.

It is recalled that, according to the commitment reached last July, Portugal will receive 15.3 billion euros in grants (non-reimbursable), including 13.2 billion euros, by 2023, through the Recovery and Resilience Mechanism, the main instrument of the Fund for Recovery.

Example of “recovery and renewal”

At the beginning of the presentation session of the Recovery and Resilience Plan and the Recovery Plan of the European Union, Ursula von der Leyen began by praising Portugal, the role of the country in the European Union and in the world and the way in which they Portuguese acted when the pandemic reached Europe.

Von der Leyen pointed to Lisbon as a “perfect place to talk about the future”, highlighting the “perfect blend of tradition and modernity” that Lisbon represents and noting that “the past and the present can be a guide to the future”.

“Portugal proved to be the best in Europe”said the community executive leader, adding that the Portuguese responded “with humility, with a sense of responsibility and solidarity, when the pandemic hit Europe”.

Ursula von der Leyen recalled that, in 1755, after an earthquake, the Portuguese capital had to rise again and rebuild itself. Compared to the situation currently facing Europe and the world, due to Covid-19, the President of the European Commission considers Lisbon “to be a living example of renewal and recovery”.

“Even before the pandemic hit us, Europe was already going through a period of profound and rapid change, from digitization to decarbonization.”von der Leyen continued. “And the need to recover and build a better way of doing things is as important as it was in the 18th century.”.“We can learn from Lisbon how, in fact, to rebuild, how to reshape our societies”, also stressed.

“It is in this spirit that I want to best welcome Portugal’s Recovery and Resilience Plan in the best way. Its priorities and wishes reflect what is the great reform and investment plan of the European Union, the plan for the new generation. “.

Still in his speech, Von der Leyen thanked António Costa “for his support in negotiating this historic agreement last July.”

“The new generation of the European Union – Next generation UE – enables the EU to raise € 750 billion on the market to invest in a stronger future for tomorrow. This is our goal “, he said.

“It is an urgent and unprecedented need. And it is also for an urgent and unprecedented situation: we need to repair our social fabric.”

“We must protect and modernize our single market”, stressed Von der Leyen, recalling that this has been fundamental for all the Member States of the European Union. But the European Union also needs, in the opinion of the European Commission, “Advance a fair and resilient digital green deal, as well as a fair, digital and green economy and society”.

“We know that these will be the priorities of the Portuguese Recovery and Resilience Plan and without a doubt they are priorities for the plan Next generation UE.

Ursulta von der Leyen credits that “Portugal is not only well positioned to make the most of the Next generation UE how can you be a model for others “.

According to the President of the European Commission, the next generation of European measures “will place particular emphasis on reforms” and “Portugal has extensive experience in this field, from the very difficult reforms of the past, to the most recent reforms, in areas ranging from lifelong learning, to the health sector, to the fight against labor market segmentation, very what to do “.

The Commission is “ready to support this plan and these reforms”. However, Von der Leyen recalled that Portugal “also has an advantage” in the “double ecological and digital transition”, as it is already “a digital leader in many areas” and has an initial “base” on which to build the measures of the future, recalling the web summit and the quality of technological education to the use of clean energies that has arrived since 2005.

In the environmental field, Von der Leyen gave as an example the forest fires to which “unfortunately Portugal is used to”, which have increased in frequency and intensity due to climate change.

“This is just the beginning [dos efeitos] climate change. There is an urgent need to act, but there is also a huge opportunity for all who invest early in the transition. “, He said.

At the end of the speech, the President of the Commission praised the “extraordinary responsibility and resilience” of the Portuguese in the face of the pandemic, as before the economic and financial crisis, or even earlier, throughout history.

“Portugal is a country of great explorers […] A country that has always sailed in unexplored waters ‘Through seas never sailed before’, to quote the great Luís de Camões. I can’t think of a better country to guide us through this storm and onto our future, ”concluded Ursula von der Leyen.

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