Purpose of European Funds

European Funds have played a crucial role in the performance of the Portuguese economy and the resumption of growth since the start of Portugal 2020, with effects that extend beyond the period of community fund implementation. This includes GDP growth, productivity gains, job creation, wage increases, and a growing impact on our country’s export capacity.

It’s clear that supporting businesses through community incentives is vital for leveraging investments, contributing to the sustainable growth of the Portuguese business sector, and addressing some of the structural challenges that companies face today, even when compared on a European level. These challenges include capitalization difficulties, the struggle of businesses to scale up, attracting and retaining qualified labor increasingly drawn to foreign job markets, and sustainability, which is a fundamental requirement to maintain competitiveness.

Strategic Objectives and Key Support Measures

Looking ahead, the focus is now on the new community framework, with a total of 23 billion euros to be applied by 2027, based on five major strategic objectives: a more competitive and intelligent Portugal, with innovation and the adoption of advanced technologies; a greener Portugal, moving towards a more sustainable economy; a more connected Portugal, developing an effective and secure national transport network; a more social and inclusive Portugal, ensuring access to training, reskilling, and employment; and a more territorially cohesive Portugal, closer to its citizens, promoting social and cultural development.

In Portugal 2030, throughout this year, companies will have opportunities for investment support under the four main incentive systems:

  1. Productive Innovation: Aimed at developing innovative, digital, and sustainable solutions, and increasing qualified employment;
  2. Innovation and Development (R&D): Crucial for increasing business investment in R&D and promoting more knowledge-intensive and value-creating activities with innovation;
  3. Internationalization: To promote the increase of international sales, developing new business models, and strengthening the SME’s capacity for internationalization; and
  4. Qualification: With support in intangible domains, promoting competitiveness and the ability to respond in the global market.

Novobanco’s Approach to European Funds

From our experience, a correct approach to European funds is fundamental for a successful investment project. This requires demonstrating the viability of investment projects, ensuring they align with the company’s strategy. It’s also crucial to prepare applications in advance with a robust and validated business plan, providing stability and sustainable return prospects, to present to various Partners.

Here, the support of banks and consulting teams is very important, both in the application preparation phase and in the project execution phase.

At novobanco, we are prepared to support applications to Portugal 2030, with solutions to support investment projects: support in the application phase, advancement of approved incentives with short-term financing or current accounts, preliminary financial analysis with the possibility of issuing letters of intent to finance, ensuring the project’s financial viability to Organizations, financing external capital, issuing bank guarantees for advance incentives, and Factoring and Confirming solutions to advance sales and/or supplier payments. Additionally, we offer our clients a specialized team in European funds and a network of consulting partners, such as HM Consultores, to support applications and the execution of investment projects.

The Strength of Your Company Strengthens the Portuguese Economy

Novobanco is committed, walking side by side with Portuguese companies, as always, to support short- and medium-long term needs, so entrepreneurs do not have to delay their investment projects. This is the right time to start the engine of Portugal 2030 and make the planned funds available to boost the economy’s investment.

As with the PRR, it is also crucial to ensure a good execution pace of the funds from the start, with transformative investment projects and new value chains that will bring competitiveness and growth to the country. Our entrepreneurs know how to execute, as they demonstrated in Portugal 2020, and they will do it again in Portugal 2030. For this, we need to ensure that companies have the right incentives to invest, giving them the conditions to move forward with their projects, aiming for a simplified and bureaucracy-free scenario.

Entrepreneurs and the investment projects of our companies will once again be the key to the success of the national economy’s recovery, moving towards a more sustainable, more innovative, more digital, more inclusive, more productive, more competitive, and more cohesive future.

As the novobanco communication campaign says, “The strength of your company gives strength to the Portuguese economy.” It is, in fact, the companies that drive the country forward. And novobanco is alongside the companies in Portugal. Count on us!

Tânia Duro, Director of European Funds and Sectoral Solutions

novobanco