Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure PT-2012-16/2743 – measures in Portugal
|Country||Portugal , applies nationwide|
|Time period||Open ended, started on 20 April 2012|
|Context||Restructuring Support Instruments|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Rescue procedures in case of insolvency or adaptation of insolvency regulation
|Author||Paula Carrilho (CESIS)|
|Measure added||11 July 2022 (updated 14 October 2022)|
The Law 16/2012, of 20 April set up the special revitalisation process (Processo Especial de Revitalisação - PER), amending the Insolvency and Business Recovery Code (Código da Insolvência e da Recuperação de Empresas, approved by Decree-Law 53/2004, of 18 March). It allow to comply with the goal established in the Memorandum between Portugal and the Troika with a view to creating a swift and effective means of revitalising companies and individuals in difficult financial situations or facing imminent insolvency, rather than liquidating their assets from the outset.
The PER is part of the Revitalisation Programme (Programa Revitalizar) and is an alternative judicial instrument to insolvency, which gives companies in difficulty and/or facing imminent insolvency the possibility to negotiate with their creditors, leading to the revitalisation of their activity. Therefore, this does not apply to companies declared insolvent by a court of law, or after opening of insolvency proceedings.
The instrument protects the productive capacity of the company and the jobs, by maintaining activity and providing for a suspension of creditors' debt recoveries during the negotiation process. The recovery plan is made viable by creditors.
However, all applicants must prove that they also meet certain conditions which will enable their economic recovery. More in detail, creditors must be provided with all the information needed to confirm the company's economic and financial viability, as well as the ability to comply with the restructuring agreement.
The recovery plan is considered approved if (Decree-Law 53/2004 of 18 March, article 17F):
The PER can be applied to all kind of business entities, with the exception of:
According to statistics of the Directorate General for Justice Policy (Direção-Geral da Política de Justiça - DGPJ), in the first quarter of 2022, the number of applications for the Special Revitalisation Process (PER) increase of 47% compared with the same period of 2021 but a 25% decrease compared with 2019. At the end of the first quarter of 2022, 156 of these cases were pending (about 8.3% more than in the first quarter of 2020 and less 21% than in the same period in 2019).
Additionally, data from the Informa D&B barometer shows that by the end of the third quarter of 2022 36,323 new companies were constituted in Portugal, 5,205 more than in the same period of 2021, which corresponds to a growth of 17%. Among the sectors with the highest growth in the creation of new companies, Transport (+129%), Information and Communication Technologies (+29%), General Services (+25%) and Accommodation (+25%) and Catering (23%). Compared to the period before the pandemic (2019), the creation of new companies is still 5% below. Only the sectors of Information and Communication Technologies (+29%), Real Estate Activities (+20%) and Business Services (+2%) already exceed 2019. Between the beginning of January and the end of September of 2022, 8,826 companies closed down, which corresponds to 50 fewer closures than the same period in 2021 and to a negative variation of -0.6%.
In the same period, 1,211 new insolvency proceedings were registered, a figure that represents a 20% decrease compared to the same period last year, maintaining a trend that has been observed for almost a year and a half.
The Transport sector, which is the one with the highest growth in the creation of new companies, is the only one to register an increase in the number of insolvencies, with 11 more new cases in 2022.
Employees in standard employment
||Does not apply to citizens|
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), Special Revitalisation Process , measure PT-2012-16/2743 (measures in Portugal), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PT-2012-16_2743.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.