Portugal – Government Unveils €2.5 Billion Aid Plan After Deadly Storm Kristin
Portugal – Portugal’s government has announced a wide-ranging financial assistance program worth €2.5 billion after Storm Kristin caused multiple fatalities and extensive damage across large parts of the country. The support package is aimed at helping families, businesses, and public services recover from the storm’s impact, while authorities have also decided to prolong the national state of calamity to allow emergency measures to remain in force.
Prime Minister Luís Montenegro confirmed the decision following an emergency meeting of the Council of Ministers held on Sunday. The nationwide state of calamity has now been extended until February 8, giving the government additional powers to accelerate aid distribution and coordinate recovery efforts more effectively.
Emergency Support for Households
A significant portion of the financial package is dedicated to assisting families who have suffered losses or disruptions to their livelihoods. Households facing income reductions or severe financial hardship will be eligible for direct income support of up to €537 per person. Payments will be capped at €10,075 per household to ensure assistance reaches those most affected while maintaining budget controls.
Special attention has been given to families whose primary homes were damaged and lacked insurance coverage. Under the new measures, direct grants of up to €10,000 will be available to help with urgent repairs and rebuilding. Similar financial assistance will be offered to individuals involved in agricultural and forestry activities that were impacted by flooding, strong winds, or infrastructure damage.
Relief Measures for Businesses
Businesses operating in storm-affected regions will also receive targeted support designed to stabilize operations and protect jobs. Companies will benefit from a six-month exemption from Social Security contributions, reducing immediate financial pressure as they resume activity.
In addition, the government has introduced a simplified temporary layoff scheme that will remain available for three months. This measure allows businesses facing reduced demand or operational disruptions to retain employees while adjusting working hours, helping to prevent permanent job losses during the recovery phase.
Loan and Tax Moratoriums Introduced
To further ease financial strain, a 90-day moratorium has been approved for loans linked to primary residences and business operations. This suspension applies to both principal and interest payments and may be extended for up to 12 months depending on evolving conditions and recovery progress.
Tax relief measures are also part of the package, giving individuals and businesses additional time to meet fiscal obligations without penalties. Authorities said these steps are intended to preserve liquidity and reduce the risk of long-term financial instability.
Credit Lines and Public Infrastructure Repairs
The recovery plan includes the launch of two dedicated credit lines totaling €1.5 billion. These funds are designed to support short-term liquidity needs as well as longer-term structural recovery for businesses that suffered significant damage.
Beyond private assistance, additional public funds will be allocated to repairing transport networks, public buildings, and essential facilities. Restoration work will also extend to cultural heritage sites affected by the storm, reflecting the government’s intention to protect historically significant locations while restoring normal services.
Storm Kristin’s Impact Across the Country
According to reports from local authorities and media outlets, Storm Kristin has been linked to at least eight deaths since it began affecting Portugal earlier in the week. Several regions experienced severe weather conditions, including heavy rainfall and strong winds that led to flooding, road closures, and power disruptions.
Areas among the hardest hit include Leiria and Coimbra, located north of Lisbon, as well as the district of Santarém and parts of the capital itself. Emergency services remain active in affected zones, with assessments ongoing to determine the full extent of the damage.
As recovery efforts continue, officials emphasized that further adjustments to the aid package remain possible if conditions worsen or additional needs emerge.