Azores Secure 341.1 Million Euros from Autonomous Regions Finance Law
Attractive Budget Boost for Azores in 2026 State Budget Proposal
Significant Financial Allocation for the Azores in 2026
The proposed State Budget for 2026 includes an extraordinary allocation of €150 million for the Azores. According to the budget report, €341.1 million is earmarked for the region in 2026, a 6.8% increase from the €319.3 million outlined for 2025 under the Autonomous Regions Finance Law. This comprehensive financial plan highlights several key allocations to support the Azores’ development.
Breakdown of Financial Transfers for the Azores
Under Article 48 of the Autonomous Regions Finance Law, the Azores are set to receive €220.1 million, supplemented by €121 million according to Article 49, which supports ultraperipheral regions. Additionally, €150 million will be transferred to address the specific funding needs of the Azores’ Recovery and Resilience Plan (PRR).
- Article 48 Transfers: €220,082,045
- Article 49 Cohesion Fund: €121,045,125
- Extraordinary PRR Funding: €150,000,000
Additional Funding Streams and Allocations
Beyond the primary allocations, the 2025 budget reported that the Azores will receive an additional €248.9 million from various sources, including €156 million from Central Administration and €92.8 million from Social Security. When combined, the total financial influx for the Azores approaches €590 million.
Investments in Transport and Infrastructure
The 2026 budget proposal also allocates €10.05 million to support public transportation services between the Azores’ islands. Furthermore, up to €12.5 million is designated for regular air service operations on non-liberalized routes connecting the mainland with the Azores and Madeira.
Advancements in Justice and Technology for the Azores
Prominent initiatives include the construction of a new correctional facility on São Miguel island and the deployment of the Atlantic CAM project, which involves installing submarine cables between the mainland and the autonomous regions, vital for technological development and territorial cohesion.
Provisions for Mobility and Debt Management
The budget proposal underscores the importance of the social mobility subsidy for air travel between the mainland and the Azores and Madeira. It also grants the Azores authority to incur debt, capped at €75 million, for debt consolidation and payment regularization, pending government approval.
Economic Growth and Fiscal Outlook
The government, led by PSD/CDS-PP, projects a 2% GDP growth for the current year and an increase to 2.3% in 2026. The fiscal outlook aims for budget surpluses of 0.3% of GDP this year and 0.1% next year, alongside debt ratio reductions to 90.2% in 2025 and 87.8% in 2026.
The 2026 budget proposal, submitted to parliament just before the given deadline and prior to local elections, is slated for general discussion and voting from October 27 to 28, with the final vote scheduled for November 27.
