The digital age is not just an option but an inescapable reality, redefining societies, economies, and governments. Recognizing this, Portugal has reinforced its commitment to digital transformation, culminating in the approval of Council of Ministers Rule #214/2025 on December 29, 2025. This legal instrument is far more than a bureaucratic formality; it is the cornerstone of a future where technology serves as a catalyst for progress and well-being. Through this Resolution, Portugal has approved the 2026-2027 Action Plan of its National Digital Strategy (EDN – Estratégia Digital Nacional), as reported by the news outlet Sapo.pt. This plan is an ambitious yet pragmatic roadmap designed to achieve significant goals by 2030, with one clear objective: to position the country among Europe's leaders in digital transformation. The goal is to promote a transition that is not only technologically advanced but also deeply inclusive, sustainable, and ethical.
The EDN is not limited to mere technological modernization. It comprehensively encompasses the empowerment of citizens, the competitiveness of businesses, State efficiency, and the improvement of infrastructure. This initiative represents a concerted effort to prepare Portugal for the challenges and opportunities of the 21st century, ensuring that no segment of society is left behind. As conceived in this plan, the digital transition is a dynamic and continuous process requiring adaptability and strategic investment. It is within this context that the main pillars and their associated actions, detailed in the following sections, are established. The document is not merely a plan but a manifesto of intent, aimed at shaping Portugal's digital future with a long-term perspective and a commitment to positive impact for all of society.
I. The Strategic Pillars of the EDN and the 2030 Goals: A Four-Part Vision for Digital Progress
Portugal's National Digital Strategy is built upon four fundamental pillars, each with concrete and ambitious goals for 2030. These pillars reflect a balanced approach that recognizes the interdependence between different domains of a digital society. Their coordinated implementation is fundamental to creating a cohesive and resilient digital ecosystem.
A. People: Digital Citizens and Inclusion in the 21st Century
The first, and perhaps most crucial, pillar of the EDN is focused on “People.” The goal is for 80% of the population to possess basic digital skills by 2030. This target highlights the conviction that digital transformation will only be truly successful if it is inclusive, ensuring all citizens have the tools and knowledge necessary to navigate and benefit from the digital world.
In contemporary society, digital literacy is more than an advantage; it is a basic necessity. In a world where information flows at unprecedented speed and most services migrate to digital platforms, a lack of basic digital skills can lead to social and economic exclusion. This gap significantly hinders social development and the improvement of education in Portugal. The country faces notable challenges in this area, including digital exclusion related to age (particularly among the elderly population), geography (rural populations with less access to infrastructure and training), and socioeconomic status (individuals with lower income or formal education).
To overcome these challenges, the Action Plan envisions the implementation and expansion of robust training and upskilling programs. These programs will range from formal education in schools, integrating digital skills training from an early age, to vocational training centers and initiatives led by government and civil society aimed at adults and seniors. The objective is to create a widespread learning network that reaches all communities and age groups, empowering citizens to use computers, access the internet safely, communicate online, and interact with digital services.
B. Companies: Competitiveness and Innovation in the Portuguese Business Landscape
The second pillar, “Companies,” sets two ambitious goals for 2030: ensuring that 90% of small and medium-sized enterprises (SMEs) achieve a basic level of digital intensity, and that 75% of businesses utilize Artificial Intelligence (AI) and cloud services. This pillar is vital to the competitiveness of the Portuguese economy and its capacity to innovate in the global market.
SMEs form the backbone of Portugal's economy, yet many remain in the early stages of their digital transition. Accelerating this process is essential to increase their productivity, optimize operations, expand into new markets, and create value. Basic digital intensity refers to the adoption of essential digital tools and practices, such as broadband internet, e-commerce, customer relationship management (CRM) systems, electronic invoicing, and basic cybersecurity measures.
The Action Plan recognizes the transformative potential of AI and cloud computing. The 75% adoption target reflects an understanding that these technologies are key drivers of innovation. AI can optimize operations, personalize services, enhance data analysis for informed decision-making, and even create new business models. However, AI adoption must be approached with caution and an ethical framework, ensuring systems are fair, transparent, and accountable.
Cloud computing, in turn, offers significant advantages in scalability, flexibility, security, and reduced operational costs. It allows companies, especially SMEs, to access cutting-edge infrastructure and software without substantial upfront investment. To support this transition, the Action Plan provides for financing and support mechanisms for business innovation, which may include grants, subsidized credit lines, mentoring and incubation programs, and access to specialized consulting services.
The EDN aims to identify and support sectors with high potential for digital transformation, promoting the creation of innovation clusters and fostering collaboration between companies, universities, and research centers. The ultimate goal is not only to enhance the competitiveness of individual companies but also to elevate Portugal's standing on the European and global stage, making it an attractive destination for digital investment and talent.
C. State: A Digital and Citizen-Centric Public Administration
The third pillar, the “State,” aims to make 100% of public services available digitally by 2030, simplifying interactions between citizens, businesses, and government. This pillar is essential for modernizing the state apparatus, making it more efficient, transparent, and accessible.
The vision is of a streamlined, paperless administration where bureaucracy is minimized and interactions are intuitive and swift. The digitization of public services entails not just putting forms online, but fundamentally re-engineering processes to enable automation and interoperability between different departments and entities. Platforms like “ePortugal” are envisioned as the primary gateway for a wide array of services, from civil registration and business licenses to social security and healthcare.
Data security and citizen privacy are paramount concerns in this process. As more information moves into the digital realm, protecting against cyber threats and ensuring strict compliance with data protection regulations – such as the EU’s General Data Protection Regulation (GDPR) – becomes imperative. The Action Plan, therefore, includes measures to strengthen the cybersecurity capabilities of public administration and implement robust privacy policies.
The benefits of a digital public administration are significant for both citizens and businesses. Reduced wait times, lower costs associated with travel and physical paperwork, and simplified processes translate into major gains in efficiency and convenience. The ongoing technological reform of the State should be seen as a continuous process of adaptation and improvement, leveraging the latest innovations to respond more effectively to societal needs. The Digital Citizen Card (Cartão de Cidadão digital) and the Digital Mobile Key (Chave Móvel Digital) stand as successful examples, demonstrating the potential of a public administration that puts digitalization at the service of its people.
D. Infrastructure: Universal and High-Quality Connectivity
The fourth and foundational pillar, “Infrastructure,” targets complete national coverage with 5G mobile networks by 2030, ensuring universal access to digital technologies. This pillar provides the essential groundwork upon which all others depend, as robust, high-quality connectivity is a prerequisite for digital transformation.
Digital infrastructure is EDN’s backbone. 5G technology, with its high speed, low latency, and capacity to support a massive number of connected devices, is a cornerstone for the future. Its applications extend far beyond smartphones to encompass the Internet of Things (IoT), smart cities, Industry 4.0, telemedicine, and autonomous vehicles. Achieving full 5G coverage nationwide means that even Portugal's most remote areas can benefit from these innovations, helping to bridge the geographical digital divide.
Beyond 5G, the plan also includes continued investment in fixed broadband networks (like fiber optics), ensuring both urban and rural areas have access to fast, reliable connections. “Universal access” refers not only to network availability but also to affordability, promoting service plans that are within reach for everyone.
The resilience and security of this infrastructure are equally critical. Networks must be robust enough to withstand failures and cyberattacks, guaranteeing the continuity of essential services. Investment in digital infrastructure has a direct impact on regional development and territorial cohesion, enabling businesses and citizens across the country to access the same digital opportunities.
II. The Substantial Investment and Sources of Funding
To achieve the EDN's ambitious goals, the 2026-2027 Action Plan calls for a significant investment. The total amount allocated for the 2026-2027 biennium reaches 355 million euros; a figure that reflects the seriousness and scale of Portugal's commitment to its digital agenda. This investment will be raised through various sources, demonstrating a diversified and strategic approach to financing.
A. Recovery and Resilience Plan
A substantial part of this investment, specifically 127 million euros, comes from Portugal’s Recovery and Resilience Plan (RRP). The RRP is a European Union financial instrument created in response to the economic and social crisis triggered by the COVID-19 pandemic, aiming to support the recovery of member states. Portugal's RRP has a clear focus on modernizing and digitizing the economy and public administration.
Such RRP funds are of paramount importance, as they enable Portugal to invest in long-term structural projects that would otherwise be difficult to finance. Allocating 127 million euros to the EDN highlights how digital transformation is viewed as a central pillar of the country's resilience and future. These funds will be directed toward initiatives that strengthen the digitization of public services, the digital empowerment of citizens and businesses, and the development of critical infrastructure. Monitoring these funds is inherent to the RRP's nature, which requires rigorous accountability and the demonstration of concrete results, ensuring the investment translates into real and measurable impact.
B. Connecting Portugal to Digital Europe: Connecting Europe Facility
The Connecting Europe Facility (CEF) program contributes the largest share of the investment, totaling 217 million euros. The CEF is a European funding instrument that finances cross-border infrastructure projects in the transport, energy, and digital sectors to better connect Europe and promote the single market.
The CEF's contribution to Portugal's EDN emphasizes the importance of the country's interconnection with the rest of digital Europe. Such funds will likely be directed toward large-scale digital infrastructure projects, such as strengthening broadband networks, expanding 5G coverage, and participating in major European initiatives in high-performance computing and cybersecurity. Portugal's role in the European digital network is fundamental, and the CEF ensures the country remains aligned with the continent's digital ambitions, promoting harmonization and collaboration in critical areas.
C. People 2030 Program
The People 2030 Programme contributes 7 million euros to the Action Plan. This program is a financing instrument under Portugal 2030, focused on human capital, employment, training, and social inclusion. Its contribution to the EDN highlights the plan's focus on digital skills and social inclusion.
The 7 million euros from the People 2030 Program will be instrumental in financing initiatives directly linked to the “People” pillar of the EDN. This includes training and retraining programs for citizens, actions to promote digital literacy, and digital inclusion projects for vulnerable groups. The synergy between the People 2030 Program and the EDN is clear, as both share the goal of empowering individuals for the challenges and opportunities of the future.
D. State Budget: The Direct National Commitment
Finally, the State Budget (OE) contributes 2.5 million euros. Although this represents the smallest portion of the funding, the direct contribution from the State Budget is a clear signal of national commitment to the EDN. This funding provides the government with flexibility and autonomy to manage specific projects and respond to emerging needs that may not be fully covered by European funds.
The State Budget's resources are essential alongside European funds. They allow the Portuguese state to co-finance projects, fill funding gaps, and invest in initiatives that are a national priority but may not perfectly align with European program criteria. This is a strategic investment that strengthens the government's capacity to drive its own digital agenda and respond nimbly to the challenges of the ongoing transformation.
In summary, the distribution of 355 million euros across these various funding sources reflects a strategic and intelligent approach. This investment will fund a wide range of initiatives covering digital skills, business innovation, the digitization of public administration, and the development of technological infrastructure.
III. The 20 Actions and 72 Projects That Will Shape the Future
The 2026-2027 Action Plan of the National Digital Strategy is not limited to defining goals and allocating funds; it details the concrete actions and projects that will drive digital transformation in Portugal. With 20 actions and 72 specific projects, the plan addresses several critical areas, from modernizing the state to promoting Artificial Intelligence.
A. Technological Reform of the State
The “Technological Reform of the State” is a fundamental initiative. Its objective is to equip the state with new technological capabilities to improve the efficiency and quality of public services. This implies a profound modernization of internal systems, technological infrastructures, and work practices. Public administration, sometimes perceived as slow and bureaucratic, has the potential to transform into a model of efficiency and innovation through technology.
This reform encompasses hardware and software upgrades, the adoption of cloud solutions for data and systems management, and the implementation of advanced cybersecurity measures to protect sensitive citizen and state information. Improving operational efficiency involves automating repetitive processes, digitizing records, and creating collaborative platforms that allow different state departments to share information and work synergistically. By doing so, the state will not only reduce costs and waste but also become more agile and better equipped to respond to present and future challenges. Technological reform is not an end in itself but a means to an end.
B. Data and Interoperability
The “Data and Interoperability” initiative recognizes data’s growing importance as a strategic resource, often called the “new oil” of the digital economy. The plan aims to promote the integration and secure sharing of data between different public and private entities, facilitating system interoperability.
Creating interoperability platforms is fundamental. These platforms allow different systems to “talk” to each other, exchanging information securely and in a standardized way. For example, data a citizen provides to one public service should not need to be re-submitted to another, provided sharing is authorized and privacy is respected. Data governance, anonymization practices, and information security are crucial for building the trust required for this sharing to be successful and beneficial for all.
C. Digital Public Services
The digitization of all public services is one of the plan's most visible goals, aiming to guarantee accessibility and simplicity in citizen interactions. This project goes beyond simply converting paper forms to digital formats; it involves radically simplifying processes, implementing intelligent automation, and creating intuitive user interfaces.
The ambition is for any citizen to access any public service from anywhere, at any time, using a computer or mobile phone. This means less time wasted in queues, less bureaucracy, and a more positive user experience. Digitizing public services also promotes transparency and can reduce corruption, as processes become more traceable and less susceptible to external influence.
D. Digital Economy and Regulation
The “Digital Economy and Regulation” initiative aims to create a regulatory environment that fosters innovation and growth for companies in the digital sector. In a world where technology evolves at breakneck speed, legislation and public policies must adapt quickly to act as a catalyst rather than an obstacle.
This implies reviewing and adapting existing laws and regulations to accommodate new technologies like AI, blockchain, and IoT. It also involves creating regulatory sandboxes, which allow for the controlled testing of new technological solutions before full-scale implementation. Promoting digital entrepreneurship and startups is another focus, with policies designed to facilitate the creation and growth of new technology companies. Attracting foreign investment is equally important to draw companies and digital talent from around the world to Portugal.
E. Digital Skills
The “Digital Skills” initiative is a direct complement to the “People” pillar and is fundamental to the success of all other initiatives. The plan proposes implementing training and capacity-building programs to increase the population's digital literacy, from basic to advanced skills.
This means investing in digital education from an early age, integrating it cross-curricularly into school programs. For adults, it includes creating continuous training and professional retraining programs, which are essential for workers to adapt to the demands of a constantly changing labor market. Establishing centers of excellence in key technological areas, in partnership with the private sector and higher education institutions, will be crucial for developing cutting-edge talent in fields like cybersecurity, data science, and artificial intelligence. Increasing Portugal's pool of digital talent will not only fill gaps in the job market but also boost innovation and the country's competitiveness.
F. Artificial Intelligence
Finally, and no less importantly, the EDN places special emphasis on AI. The plan calls for developing and implementing a National AI Agenda, constituting a comprehensive strategy for the development and responsible, ethical use of AI in Portugal.
This agenda includes acquiring dedicated computing capacity, such as supercomputers, and securing access to high-performance cloud infrastructures, which are essential for training complex AI models and for scientific research. Creating a robust infrastructure for AI innovation is another priority, involving the promotion of research and development, support for AI startups, and the application of AI solutions across various economic sectors such as health, security, education, and the environment.
The ethical, regulatory, and social dimensions of AI are central to the National AI Agenda. This includes developing guidelines for AI's ethical use, protecting against algorithmic bias, ensuring data privacy, and preparing the workforce for the changes AI will bring. AI's potential to transform society and the economy is immense. Through this plan, Portugal seeks to position itself at the forefront of this technological revolution, ensuring the benefits of AI are widely shared and its risks are proactively mitigated.
IV. Monitoring, Transparency and Governance
The scale and complexity of the National Digital Strategy Action Plan demand a robust monitoring and governance mechanism to ensure its effective execution and the achievement of established goals. Transparency is a fundamental pillar of this process, allowing society to both track progress and identify areas for improvement.
The importance of continuous monitoring for the plan’s success cannot be overstated. The 2030 goals, while ambitious, are dynamic and will require periodic evaluation to ensure the plan stays on course and adapts to constant technological developments and societal needs. To this end, the Action Plan envisions the creation of a dedicated online portal. This will serve as a central tool for transparency and accountability, allowing the public to consult the status of key goals and monitor the progress of various actions and projects.
Monitoring will be based on clear and measurable performance indicators, enabling an objective assessment of the impact of each initiative. These indicators may include, for example, the percentage of the population with core digital skills, the number of companies adopting AI or cloud services, the progress in digitizing specific public services, or the expansion of 5G network coverage. Impact assessment will extend beyond quantitative metrics to understand the qualitative changes in citizens' lives and business competitiveness.
Furthermore, mechanisms for adjustment and flexibility within the plan are essential. Digital transformation is a rapidly evolving field; a priority today may be superseded by a new technology or need tomorrow.
Governance is another vital aspect, as implementing such a comprehensive strategy requires the involvement and coordination of multiple actors: various ministries and government agencies, regional and local entities, the private sector, academia, and civil society. Creating effective coordination structures, with well-defined responsibilities and open communication channels, will be crucial to avoid duplication of efforts, optimize resources, and ensure all parties are working toward the same common goal.
V. Challenges and Opportunities on the Path to 2030
Despite the optimism and ambitious vision of the National Digital Strategy Action Plan, it is imperative to recognize that the path to 2030 will be paved with significant challenges, alongside transformative opportunities.
A. Challenges to Overcome
- Resistance to Change (Cultural and Organizational): Digital transformation is not merely technological; it is, above all, a cultural and organizational shift. Resistance to new ways of working, within both public administration and the private sector, can be a major obstacle. This will require significant investment in change management, ongoing training, and clear communication of digitalization's benefits.
- Digital Talent Shortage: Portugal, like many nations, faces a shortage of professionals with advanced digital skills. Demand for specialists in cybersecurity, data science, AI, and software development far exceeds supply. The plan must prioritize accelerating education, retraining programs, and attracting international talent.
- Cybersecurity and Data Protection: Increased digitalization brings heightened risks of cyberattacks, data breaches, and other threats to digital security. Protecting critical infrastructure, personal data, and business systems requires continuous investment in advanced technologies, expert training, and robust legal frameworks.
- Ensuring Universality: While the goal of 80% basic digital literacy is ambitious, it still leaves a portion of the population at risk of exclusion. Overcoming the digital divide (whether due to age, income, geography, or disability) requires tailored approaches and a sustained effort to ensure technology is a unifying force, not a divisive one.
- Keeping Pace with Technological Innovation: The speed of technological evolution is staggering. Consequently, the action plan must remain flexible enough to adapt and incorporate new trends and innovations that will emerge in the coming years, preventing it from becoming obsolete.
- Bureaucracy and Inter-Entity Coordination: Implementing a plan of this magnitude involves numerous ministries, agencies, and entities. Inherent governmental bureaucracy and the difficulty of coordinating across different organizational silos can delay execution and compromise effectiveness. Streamlining internal processes is therefore a prerequisite for the EDN's success.
B. Opportunities Pursued
- Economic Development: Digital transformation is a powerful driver of economic growth. Adopting new technologies can increase productivity, foster innovation, and create new business sectors and high-skilled jobs.
- Improving Quality of Life for Citizens: Digitizing public services can make citizens' lives simpler, more efficient, and more convenient. It enhances access to information, facilitates civic participation, and improves communication, thereby raising the overall quality of life.
- Increasing Government Efficiency and Transparency: A digital state is a more efficient and transparent state. Automating processes reduces bureaucracy and increases visibility into government operations, building public trust and helping to combat corruption.
- Internationalization and Investment Attraction: A strong technological foundation makes Portugal more attractive for foreign direct investment in tech, for companies seeking qualified digital talent, and for the establishment of innovation hubs. It also facilitates the international expansion of Portuguese companies by enhancing their competitiveness in global markets.
- Positioning Portugal as a Technological Hub: Through strategic investment in infrastructure, skills, and AI, Portugal has the opportunity to establish itself as a relevant technological hub in Europe, attracting entrepreneurs, investors, and talent, while contributing to global innovation.
- Sustainable and Smart Development: Digital technology can be a powerful ally in promoting sustainable development. Smart cities, precision agriculture, and energy management demonstrate how digitalization can contribute to a more sustainable future.
VI. Portugal at the European Digital Forefront
Council of Ministers Resolution #214/2025 and its accompanying 2026-2027 Action Plan represent a historic milestone in Portugal's journey toward a fully digital society and economy.
The key pillars of this vision are: “People,” with the imperative to equip 80% of the population with basic digital skills; “Business,” aiming to digitize 90% of SMEs and drive the adoption of AI and cloud computing in 75% of companies; “State,” committed to offering all public services digitally; and “Infrastructure,” which seeks to ensure full 5G coverage and universal access to digital technologies.
The strategic investment of 355 million euros for the 2025-2026 biennium, drawn from a smart mix of European funds (the Recovery and Resilience Plan and the Connecting Europe Facility), specific programs like People 2030, and the State Budget, demonstrates the serious and financially sound ambition underlying this endeavor.
In conclusion, the Action Plan for Portugal's National Digital Strategy is not merely a set of measures; it is a transformative vision for the country's future. It is a commitment to building a more digital, inclusive, sustainable, and ethical Portugal, one capable of meeting the challenges of the 21st century and thriving at the forefront of the technological revolution. This plan is the stepping stone for achieving the 2030 goals, consolidating Portugal's digital leadership, and serving as an example of how technology can be a powerful engine for social and economic progress.
