Portugal and Spain unite to streamline regulation and strengthen competitiveness

A newly created bilateral working group will focus on reducing bureaucratic burdens between the two countries, helping to strengthen their participation in the European Single Market. Particular attention will be given to supporting small and medium-sized enterprises (SMEs) and communities located along the Portuguese-Spanish border.

The initiative was unveiled in Lisbon during the first meeting of the Luso-Spanish Strategic Forum for Competitiveness, an organisation established following a joint declaration signed by both governments in March.

The meeting was attended by Portugal's Minister of Economy and Territorial Cohesion, Castro Almeida, and Spain's First Vice-President and Minister of Economy, Trade and Companies, Carlos Cuerpo.

During the discussions, both ministers recognised that a number of technical, regulatory and administrative barriers continue to hinder cross-border activity. They pledged to address these challenges through closer cooperation, lower business costs and improved alignment with European Union legislation.

For companies operating on both sides of the border, particularly SMEs, the objective is clear: simpler procedures, reduced compliance expenses and greater clarity when dealing with the regulatory frameworks of two separate countries.

Alongside the forum, Portugal's development bank, Banco Português de Fomento (BPF), signed a memorandum of understanding with Spain's Official Credit Institute (ICO), establishing a formal basis for future financial cooperation.

Under the agreement, the two organisations will collaborate on initiatives related to social housing and affordable rental programmes, including the exchange of financial products and best practice. They also intend to harmonise their credit risk assessment methodologies, a move designed to improve access to finance for businesses, while exploring new financial instruments to assist companies seeking international expansion.

Both governments have committed to holding a further meeting before the end of 2026 to review progress and advance the partnership.

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