José Manuel Bolieiro announces new support for business investment with €40 million from RRP and increases up to 70% - Communication

Presidência do Governo Regional

The President of the Azorean Government, José Manuel Bolieiro, presided over the launch ceremony for the magazine “100 Maiores Empresas dos Açores 2024” (100 Largest Companies in the Azores 2024) on Thursday at the Teatro Micaelense in Ponta Delgada. On the occasion, he emphasised the decisive role of companies in the current growth cycle and announced a new instrument for direct support for business investment, following recent changes to the RRP.

Speaking to entrepreneurs and other entities, the President of the Regional Government began by acknowledging the economic fabric, stating that "the Azorean economy is now more solid, vibrant and confident, and this is mainly due to our companies." He reinforced the idea that the results achieved did not happen by chance, "as they are largely due to the Azorean workers, entrepreneurs, and the public policies promoting their success."

The head of the Azorean Government highlighted a consistent path, noting that "private consumption has been growing for 52 consecutive months and the Economic Activity Indicator for 50 months .‘ He also pointed out the greater mobility between the nine islands, noting that since June 1, 2021, the "Azores Fare" has paved the way for "more than 1.4 million inter-island trips at €60."

As for tourism, he stated: "In tourism, we have broken all records for business revenue and the number of passengers arriving in the Region. As for the productive economy, particularly in the agrifood sector, he pointed out that "agricultural production exported outside the Region amounted to more than €431 million in 2024." In fisheries, the "volume of fish caught reached €40 million in 2024." Regarding external trade, "exports abroad reached €160 million, a 39% increase compared to 2019." The President of the Government highlighted the current situation in the labour market, pointing out that there have never been so many people in employment (121,500) and so few unemployed (3,982).

In the area of public policy, the President reiterated that support for businesses should entail increased competitiveness and greater scope for investment, highlighting the regional option for lower taxes.

José Manuel Bolieiro also emphasised that, despite the tax reduction, "tax revenue collection will reach €681 million in 2024, an increase of 26% compared to 2019," defending that the logic is simple: "our political belief is that with less tax burden, the economy becomes more dynamic."

The President of the Government emphasised that "tax revenue grows, not due to high tax rates but due to a stronger economy and more wealth creation." In this context, he pointed out that maintaining the tax differential will allow Azorean taxpayers - companies, consumers, workers and pensioners - to have kept an additional €1 billion in the economy by the end of 2026, stressing that "did not take the form of a subsidy, but rather of taxpayers retaining their own wealth, the result of their labour and investment."

The President of the Government also outlined this development within a path of growth and convergence, pointing out that "in 2025, the Region will exceed the €6 billion mark in Gross Domestic Product. At the same time, compared to the European Union, "the GDP per capita of the Azores rose from 65.1% in 2020 to 71.2% in 2023."

José Manuel Bolieiro took the opportunity to announce some news directly related to business investment, explaining that the RRP, in its initial version, "did not include direct support for business investment" and "was limited to the capitalisation of companies."

In this regard, he announced that, "at this very moment," a ‘technical meeting with business associations and the Regional Secretary for Finance was taking place to work on new financial resources," thereby 
harnessing the opportunity arising from the review and simplification of the PRR, completed on October 31. According to him, this "opened the door to the creation of new investment incentive instruments."

The head of the Azorean Government then highlighted the "Financial Instrument for Innovation and Competitiveness." He considered it as "a measure to support competitiveness and business modernisation," which includes "a specific allocation for the Region amounting to €40 million, managed by Banco Português de Fomento (investment bank)."

Regarding the ambition of the support, he stated that "the Government of the Azores will ensure increases in co-financing rates, which may reach 70% of the investment amount. He concluded with a 
clear political message: "with this decision, we reiterate our commitment to creating better conditions for investment, innovation, and prosperity, strengthening the Azorean economic fabric and projecting the Azores into the future."

The President of the Government also stressed that 2026 will be a particularly important year for the regional economy from an investment standpoint. In this regard, he defended that "the economy is growing, but it needs continuity, ambition and investment," noting that there will be "more than €600 million to be spent on closing the RRP and N+3 of the Azores 2030 programme."

From a strategic perspective, he reiterated his intention to maintain the focus on "giving more economy to the private economy." He advocated that the current favourable moment should be harnessed to "strengthen the business fabric, stimulating innovation, modernisation, qualification, and diversification," without forgetting the social component of growth: "fair distribution of the wealth generated" and a "strong middle class" as a requirement for a more competitive and sustainable economy.

Related press release: Speech by the President of the Regional Government