The European Commission has proposed to use part of cohesion funds to improve military infrastructures, reinforce the defense of the European Union (EU) and increase financing for accessible housing. These funds, totaling 392 billion euros to 2021-2027, may undergo changes affecting countries such as Portugal.
More money for defense and security
Brussels wants the countries of the European Union to use part of these funds to build military infrastructures and support defense -related companies. This proposal comes at a time when European security is a growing concern.
If this change is approved, Portugal will have to decide whether to redirect part of its financing for this sector. However, there is still no certainty about how this can affect projects already planned.
Reinforcement in housing support
The European Commission also wants to increase the money available for accessible housing. The goal is to combat the housing crisis that affects young people and families with low income.
In addition to this increase, the EU intends to attract private and public investments to this sector, through a new mechanism created with the European investment bank. The idea is to facilitate the construction and renewal of houses at affordable prices.
We recommend:
What changes to Portugal?
Portugal receives about 23 billion euros of these funds. The EU estimates that this money helps the economy grow 3% by 2029 and create thousands of jobs.
But if the reaction advances, some areas may lose financing. The Portuguese government will have to decide whether to accept this change or try to keep plans already approved.
Final decision later this year
The proposal will be debated by and by the EU council. Brussels wants to close the lawsuit later this year, so that the new rules come into force in 2026.
Each country will have to review its plans and obtain approval from the European Commission. It is not yet known if Portugal will follow this new strategy or if it will try to keep the back as they are.
With the weight of these funds in the national economy, the decision will be difficult. In the coming months, it will be important to follow negotiations to realize how this can affect the country.
Also read:
