Azores faces regional deficit concerns and EU budget criticism

The Azores Economic and Social Council (CESA) has expressed concern regarding the negative evolution of the region's public finances. In 2025, the Azores recorded a deficit of approximately 305.5 million euros, representing about 5% of the regional GDP. This deficit, which has led to increased regional debt, was noted by CESA officials as occurring during a year heavily impacted by investments from the Recovery and Resilience Plan (PRR).

While Portugal and the Madeira region reported budget surpluses in 2024 and 2025, the Azores has continued to accumulate deficits. CESA leadership warned of the potential consequences following the conclusion of the PRR, particularly for the construction sector.

Separately, the Vice-President of the Azores Government, Artur Lima, criticized the European Union's proposed Multiannual Financial Framework for 2028-2034. Lima argued that the proposal fails to account for the specificities of the Azores, particularly regarding cohesion, agriculture, and fisheries policies. He emphasized the need to maintain support for maritime and air connectivity and expressed concern that certain measures under the EU treaty for ultra-peripheral regions appear to favor French territories over the Azores.