The recommendations, published on 10 July as part of the 2026 European Semester, call on the Portuguese government to address long-standing challenges affecting both sectors.

EU finance ministers meeting in Brussels highlighted persistent shortages of healthcare professionals and said improving access to healthcare should remain a priority, Algarve Daily News reports.

The Council also called on Portugal to tackle housing affordability by encouraging more efficient use of existing housing stock, including through adjustments to the tax system.

Long-term reforms

The recommendations encourage Portugal to expand the supply of housing, particularly affordable and social housing, while improving coordination between housing policy, urban planning, land-use planning and transport strategies.

The Council also urged the government to safeguard the long-term sustainability of the pension system and promote supplementary pension schemes.

Further recommendations include improving the efficiency of the tax system by simplifying tax incentives, expanding access to venture capital and private investment, strengthening financial literacy, and supporting research and innovation.

Investment and energy priorities

The Council said Portugal should continue implementing reforms and investments under the Recovery and Resilience Facility (RRF) while accelerating the rollout of cohesion policy programmes. It noted that, where appropriate, funding could be redirected towards strategic priorities using the flexibility introduced during the mid-term review of the EU’s cohesion policy framework.

The recommendations also call for continued efforts to decarbonise the transport sector, strengthen the electricity distribution network and improve water management.

In addition, the Council reiterated earlier guidance from the European Commission, stating that measures introduced to soften the impact of higher energy prices should remain temporary and targeted. According to the recommendations, support should focus on vulnerable households and energy-intensive businesses, preserve incentives for energy savings, and remain consistent with Portugal’s commitments under the EU’s fiscal framework.