Portuguese Prime Minister Luís Montenegro announced on Tuesday an additional €440 million in funding for the social and solidarity sector over 2025–2026, signing an addendum to the Cooperation Commitment in Lisbon. The package includes a €218 million increase for 2026 alone, alongside measures such as doubling the IRS allocation to 1% for social institutions. Montenegro framed the move as a strategic partnership, not a concession, emphasizing stability and predictability for families and communities.
The announcement builds on the EU's broader push to modernise social investment. On March 25, 2026, Executive Vice-President Roxana Mînzatu proposed a €3.3 billion reallocation of the European Social Fund Plus (ESF+) towards competitiveness, defence, affordable housing, water management, and energy infrastructure, with Portugal among countries leading in dedicating ESF resources to these sectors. That mid-term review of Cohesion Policy redirected €34.6 billion across 186 programmes, prioritising skills and education to support strategic industries.
Montenegro's pledge also aligns with Mînzatu's November 2025 anti-poverty strategy, which set a goal to eradicate poverty in Europe by 2050 through skills development and the Union of Skills strategy. The Portuguese government is now working on a law for the social economy to permanently frame state-institution relations, echoing the EU's emphasis on long-term, structured social investment.
The funding targets priority areas including childhood, youth, and the elderly, with increased co-payments for elderly care. Montenegro stressed the need for a strategic vision beyond day-to-day management, aiming for a more balanced and just society. The addendum was signed with representatives of major social organisations, reinforcing a 'team spirit' between the government and the sector.
Stakeholder Impacts - Social sector institutions benefit from increased funding and a push for a permanent legal framework, providing greater financial predictability. - Vulnerable populations (children, youth, elderly) gain improved access to social services and co-payments, enhancing social inclusion. - National authorities face administrative demands to implement the new law and coordinate with EU-level ESF+ reprogramming. - EU regulatory bodies see Portugal's national efforts as complementary to the EU's strategic reallocation of social funds, reinforcing cohesion policy goals.
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