Background information

The Council of Ministers approved the Energy to Move Forward plan, through the Resolution of the Council of Ministers 87/2022, of 4 October. This measure establishes support mechanisms for companies dealing with rising energy prices.

The budget for this measure is €1.4 billion. The budget will help companies combat rising energy prices and mitigate the effects of inflation.

The current geopolitical context requires policies that respond to economic disruption and the effects of rising energy costs. The response to this increase in costs is also linked to the government's promotion of the digital and climate transition, the reduction of carbon emissions and the use of new technologies in the manufacturing of sustainable products.

Other related measures in the EU PolicyWatch include Support to the social sector and Strengthening the programme "Support for gas-intensive industries" .

Content of measure

The new credit line, with mutual guarantee, is directed at companies affected by the sharp increase in energy and raw material costs and by disruptions in the supply chains. This credit line has an overall amount of up to €600 million with a maturity of up to 8 years and a 12-month grace period. This credit line will be promoted by Banco Português de Fomento within 30 days of the date of entry into force of this resolution.

This measure is cumulative to the measures currently in force, namely those of a fiscal nature, to support innovation and to mitigate the increase in fuel prices.

Use of measure

The credit line to support increases in production costs was launched on 30 December 2022 by the Banco Português de Fomento (BPF) and IAPMEI, in partnership with the adhering credit institutions and Mutual Guarantee Societies.

According to information released on 10 May 2023 by the ECO online newspaper, €268 million of the €600 million has been approved for use by 512 operations.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were involved in the Tripartite Permanent Commission of Social Concertation (CPCS). This group includes government representatives; representatives of employer confederations, i.e., the Entrepreneurial Confederation of Portugal (CIP), the Confederation of Commerce and Services of Portugal (CCP), the Confederation of Farmers of Portugal (CAP), and the Confederation of Portuguese Tourism (CTP); and the representatives of trade union confederations, i.e., the General Confederation of Portuguese Workers (CGTP) and the General Union of Workers (UGT).

Views and reactions

The Portuguese Confederation of Micro, Small and Medium-Sized Enterprises believes that the government insists on the indebtedness of companies. At a time when many companies cannot cope with the increase in operating costs, the measures announced by the government, "not only ignore them absolutely, but what they put forward most significantly, corresponds to €900 million of indebtedness in a broad manner for all companies".

Sources

• 15 September 2022: CPPME press release on Energy to Move Forward (www.cppme.pt)
• 04 October 2022: Resolution of the Council of Ministers 87/2022, of 4 october (dre.pt)
• 03 January 2023: DGAE Press Release 3 January 2023 (www.dgae.gov.pt)
• 10 May 2023: Eco online newspaper 10 May 2023 (eco.sapo.pt)