European Commission Urges Portugal to Diversify Corporate Financing with Institutional Investors and Pension Funds (eco.sapo.pt)

• European Commission recommends Portugal shift from bank credit to capital markets for corporate financing.
• Key measures: strengthen institutional investors and expand supplementary pension schemes.
• Only 16% of Portuguese have high financial literacy (2023 Eurobarometer, second-lowest in EU).

"The European Commission recommends that Portugal urgently reform its corporate financing model, which remains overly dependent on bank credit and self-financing. The Commission calls for strengthening the role of institutional investors (insurers, pension funds, asset managers) and developing supplementary pension schemes to provide long-term capital for venture capital and private equity. Additionally, financial literacy is weak: only 16% of Portuguese scored 'high' in the 2023 Eurobarometer, the second-worst result in the EU."