Portugal Unveils $3 Billion Recovery Package After Devastation From Storm Kristin
Prime Minister Luís Montenegro said the emergency funding aims to accelerate rebuilding efforts while providing immediate financial relief to households and companies affected by the storm, which brought violent winds, torrential rain and widespread flooding across central and northern Portugal. Storm Kristin caused extensive damage to homes, facto
ries, transport networks and energy infrastructure, leaving hundreds of thousands temporarily without electricity and water. Authorities confirmed multiple fatalities and injuries, while civil protection services described the scale of destruction as “exceptional.” The aid package includes direct financial assistance for individuals whose homes were damaged, with higher support levels for uninsured properties. Small and medium sized enterprises will receive targeted grants and subsidized credit lines to restore operations and prevent job losses. A significant portion of the funds will also be allocated to rebuilding roads, schools, hospitals and other critical public facilities. In addition, the state-owned development bank, Banco Português de Fomento, will provide government-backed loans to companies facing severe losses, while a fast-track approval process has been introduced to cut through administrative delays during reconstruction. The government has extended a state of calamity across dozens of municipalities, allowing emergency measures such as temporary suspension of planning regulations and faster release of public funds. Officials said these steps are necessary to ensure rapid recovery while safeguarding public safety. Climate experts have warned that extreme weather events are becoming more frequent and intense in southern Europe, increasing pressure on governments to strengthen disaster preparedness and infrastructure resilience. Montenegro said the recovery plan reflects both immediate necessity and long term responsibility. “Our priority is to help people rebuild their lives quickly,” he said. Adding that the government would also review climate adaptation strategies to reduce future risks. Reconstruction efforts are expected to continue over the coming months, with authorities pledging transparency in the allocation of funds and close coordination with local governments.
