LUSA 03/21/2026

Lusa - Business News - Portugal: EU guarantees storm aid for Portugal’s recovery plan

Brussels, March 20, 2026 (Lusa) - Portugal's prime minister announced on Friday that he had received a guarantee from the European Commission that the country "will neither lose nor return" any funds from its Recovery and Resilience Plan (RRP) for projects stalled by recent storms, stating that an "ingenious solution" would be found.

“We leave here with the assurance that, between the Portuguese government and the team of the president of the European Commission, a way will be found to ensure that Portugal will neither lose nor return any funds relating to these projects, which will not be completed during this period because it is clearly impossible given the way they have been affected by force majeure”, said Luís Montenegro at a press conference following the European Council summit in Brussels.

The prime minister said that the Commission has shown "total availability" to work with the government to identify "a path and the necessary mechanisms" so that Portugal "does not miss out on any ongoing financing and investment opportunities”.

"I cannot tell you exactly how this will happen, but it will certainly be in accordance with rules that allow for greater flexibility and agility, without encountering any opposition or obstruction from the other Member States", he said.

When questioned by reporters on whether he had requested an official extension to Portugal's RRP deadline, Montenegro said he had not, but instead, he asked for a solution that could be reconciled with the rules and their flexibility in light of a force majeure situation”.

“I can say that it will always be an ingenious solution, but one that will naturally have to ensure that we do not miss out on opportunities due to an event to which we have made no contribution”.

He said that Portugal should not be penalised "for an event unrelated to performance levels, merit, or any procedural or execution-related negligence by the Portuguese State," adding that other member states understood this position.

"They offered words of encouragement specifically regarding their confidence that an understanding can be reached between the member state and the Commission, because they themselves have done so in the past", he said.

The prime minister acknowledged that it is difficult "to see how, given the strict deadlines, milestones, targets" in the RRP, it can be ensured that Portugal does not lose out financially.

"But it is my conviction that it would be unthinkable – something no one would understand – if a member state is in the middle of a process, in a project, complying with all the rules, all the deadlines, without a single flaw, neither procedural nor in implementation… We are facing a catastrophe,” he said, stressing that it will be “difficult”, but that “this understanding will be reached”, and that he takes “a very positive view of the outcome of this meeting”.

Luís Montenegro also thanked the leaders for including in the summit’s conclusions a message of solidarity with Portugal following the storms and emphasised that, right at the start of the meeting, he had asked for “a short film” to be shown, “visually illustrating the social and economic impacts that this situation has caused”, noting that not all member states were aware of its “scale and magnitude”.

“During that time, I had the opportunity to share with my colleagues and with the president of the Commission that what we experienced in Portugal was an extreme weather event, unprecedented in our history,” he said.

TA/MYAL // DB.

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