Algarve will receive ‘300 million euro mega-injection’, announces Costa after EU money talks

85mega injectionThe Socialist Party (PS) of the Algarve today publicly celebrated Prime Minister António Costa's commitment to the historic agreement reached this morning in Brussels by the European Council.

The creation of a specific plan for the Algarve of 300 million euros was announced by the politician, received as good news for the region hit abruptly by the effects of the pandemic of COVID-19 and which, together with the funds of the next Multiannual Financial Framework 2021-2027, can almost double Community funds available for the improving of the region.

Luis Graça, president of the Algarve group of the ruling Socialists, underlines that this is an opportunity for, together with the City Councils, the University of the Algarve and business associations, to converge with the government in the development of a plan that allows a change in the region's productive profile, which today is completely dependent on tourism, and the development of a set of infrastructures and the strengthening of skills and qualifications that reinforce the resilience of the regional economy and the environmental sustainability of the Algarve.

The European Council approved this Tuesday, July 21, a historic agreement to revive the post-crisis community economy after being affected by the COVID-19 pandemic, in a total package of 1.82 billion euros. Portugal will be able to raise, with the long-term budget of the European Union (EU) and the Recovery Fund, 45 billion euros in subsidies, earmarking 300 million euros to the Algarve region, mostly to the drastic fall in tourism. The money is expected to be injected over the next seven years.

“The crisis that we are going through has particularly affected tourism, which has meant a very particular sacrifice for the Algarve region in specific, being in fact the one where unemployment has risen most dramatically, and it is a region that, being in transition, it has had a lower allocation of funds than other regions for several years”, justified PM António Costa.

The decision came at 5:30 am, minutes after EU heads of state and government resumed formal work in Brussels after the difficult negotiations in recent days. The meeting resulted in the approval of a Multiannual Financial Framework for 2021-2027 of 1.074 billion euros and a Recovery Fund of 750 billion, with just over half in grants.

The agreement comes at a time when Portugal, in the words of António Costa, "struggles to continue to contain the pandemic, and to keep businesses, jobs and family incomes alive". Speaking to journalists, Costa also noted the need to give the country a burst of “extra energy”. Among the 45.1 billion euros that Portugal will now receive over the coming years include 15.3 billion euros in non-refundable transfers (essentially free money) under this program for recovery, as well as 29.8 billion euros in subsidies from the EU budget in the long term.

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Comments  

+2 #11 Reg Pellow 2020-07-25 20:01
Exactly where will this "windfall" be used. Thinking of times past, monies that were allocated to regions suffering from fires, ie Monchique never ended with those poor suffering communities. I am afraid the same will happen again, Government will ensure that their drives and paved areas of own properties will be completed before the money is seen by communities here
+2 #10 JC 2020-07-25 05:25
Oh dear the has been Peter Booker is at it again.

The reality is most young Portuguese have fled the country for better paying jobs abroad.
The tourist industry with it's 600 euros a month almost slave wages,relies on cheap eastern european labour,
So who is benefiting?Only the overpriced Hotels, restaurants, bars and landlords.
Not

Tourism is what built Vilamoura on sea level land,without any regard for the future.
The future shows it is underwater along with the Quinta da Lago by 2050.

Tourism is nothing but a short term fix.

Being so reliant on something so seasonal and transient is the height of all folly.
-3 #9 Peter Booker 2020-07-24 18:37
I am astonished to be fingered by JC for preventing others from speaking the truth. And to be accused of an attitude that has prevented change in the Algarve.

By all means let the Algarve´s economy diversify. JC for some reason connects the climate with the potential success of the Algarve as a silicon valley of Europe. But then he spoils it all by pointing out that Faro and Vilamoura will be partly submerged by the year 2050. Silicon valley entrepreneurs may not find that prospect attractive.

This may be an "old guard" point, but the Algarve was rescued from its reliance on the fishing industry by the advent of the tourism just 50 years ago, and during that time, tourism has served the Algarve very well, and very successfully.

Does JC have any further ideas for diversification? Construction of submarines? Diving schools?
+2 #8 JC 2020-07-24 15:05
Peter Booker lives in his own universe.Nobody is allowed to speak the truth about the realities of living here.

It is sad that such old guard still exist.
It is for that reason much needed change has evaded thew Algarve for decades.

The reality is the Algarve is being devastated because of it's ill advised reliance on tourism.

The needs to adapt to the new world order and fast.

Also don't forget to look at the flood maps for 2050.A huge part of places like Faro and Vilamoura will be underwater.
+2 #7 Chip 2020-07-23 11:26
Portimao also has an excellent catering college, Brook.
But your final point is spot on. If the Algarve is to survive it has to diversify.
+1 #6 Brook 2020-07-22 22:25
Peter Booker:
Actualmente, o antigo convento (São Francisco) alberga as instalações da Escolar de Hotelaria e Turismo de Faro.
...............................

I would think that Săo Francisco's school of hospitality and tourism would welcome funding to further it's learning experience for the students and perhaps to purchase new equipment.
-2 #5 Peter Booker 2020-07-22 19:16
(2) Catering college, how can you demand excellence in the hotel and tourism industry, when a place of learning does not exist, says Brook. I disagree. This entry from Wikipedia shows:

Actualmente, o antigo convento (São Francisco) alberga as instalações da Escolar de Hotelaria e Turismo de Faro.
+4 #4 Brook 2020-07-22 18:04
Improvement for the community of the Algarve ...
(1) complete overhaul of the EN125 (East of Faro)
To include a cycling lane for promotion of tourism.
(2) Catering college, how can you demand excellence in the hotel and tourism industry, when a place of learning does not exist.
(3) encourage young people with fresh ideas to create business opportunities and offer start up grants.
The money is now here, no more excuses !
+5 #3 JC 2020-07-22 09:46
Nothing changes,handouts for the few.Socialists proving again they are only good at spending other people's money.
Will they make the Algarve less dependent on tourism? Of course not.

Will they have the vision to turn the Algarve,with the best climate in the world into the silicon valley of Europe?

Nope.


Around and around in circles.Lot's of talk very little action.

Get rid of the current lot of politicians and put some visionaries in charge.
+1 #2 Peter Booker 2020-07-22 09:02
It is ironic that this news item refers to a mega-injection of €300m spread over seven years; while the previous item declares that €300m is not enough for even one year.

I suspect that the previous item is closer to the truth.

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