Madeira faces budget shortfall as PRR ends and hospital costs surge

As the European Union Recovery and Resilience Plan (PRR) draws to a close, the Madeira regional government is preparing to impose execution fees close to 100 % while confronting a growing fiscal deficit. Housing targets have been cut from more than 1,100 new homes to 805, eliminating over 300 units and worsening an already tight rental market where prices are rising and salaries lag behind the national average.

In the health sector, the region reports a shortage of around 540 care beds – 400 in residential homes and 140 in continuous‑care facilities – leaving roughly 1,400 patients awaiting discharge and creating a high number of “problematic discharges.” The new Central University Hospital of Madeira, the largest public works project in the country, has seen its base price rise from €265 million to €415 million, not including the cost of medical equipment, further straining the regional budget.

These combined shortfalls in housing, social care and hospital financing highlight what officials describe as a serious governance failure, with immediate impacts on residents’ access to affordable homes and health services.