Portugal shifts school-building funds to Portugal 2030 as EU recovery plan ends

The draft State Budget for 2027 reflects a slowdown in public investment following the termination of the Recovery and Resilience Plan, moving the continuation of school-building works into the Portugal 2030 plan and the national budget. EU-funded public spending is set to decline, while national-only investment stays almost flat. The closure of the PRR in August 2026, after the final payment request to Brussels, prompted the government to create a transition mechanism that transfers unfinished, eligible school projects to Portugal 2030, backed by a fresh tranche of European funds.

The budget also authorises changes to municipal agreements, making the state assume VAT and national co-financing for school refurbishments carried out by local authorities. Additionally, a new clause removes the need for prior Tribunal de Contas approval on school digitalisation contracts, allowing faster procurement of computers and network licences.