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Factsheet for measure PT-2022-27/3400 – Updated – measures in Portugal

Aid for companies affected by extreme weather events in disadvantaged regions

Sistema de Apoio à Reposição das Capacidades Produtivas e da Competitividade

Country Portugal , applies locally
Time period Open ended, started on 01 July 2022
Context Extreme Weather Events
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Heloísa Perista (CESIS)
Measure added 09 November 2023 (updated 02 May 2025)

Background information

In Portugal, there have been occasional adverse situations that have particularly affected territories that are more vulnerable to natural hazards, or with less competitive economic activity, or with a low capacity to attract investments.

Therefore, the Government considered important to create a specific scheme to support productive capacities and competitiveness of companies affected by extreme weather events in these areas.

This aim has been realised through Decree-Law 4/2023, that creates the Support System for the Replenishment of Productive Capacities and Competitiveness to enable the rapid re-establishment of production conditions for companies directly affected by direct losses and expenses associated with architectural and engineering projects and construction work needed to restore their productive capacity.

The granting of aid and the adverse situations in question are further defined by:

  • Council of Ministers Resolution 83/2022, of 27 September 2022, approving measures as a result of the damage caused by the forest fires in the Serra da Estrela Natural Park.
  • Council of Ministers Resolution 12-B/2023 of 6 February 2023, which approves measures as a result of the damage caused by floods in December 2022 and January 2023.

Content of measure

The Support System for the Replenishment of Production Capacities and Competitiveness aims to recover damaged business assets, in whole or in part, for situations of reported damage of up to €200,000 caused by adverse situations.

Projects must have a maximum duration of 18 months of the investment period and should be promoted by businesses located in eligible municipalities in all economic activities, with the exception of the agricultural or forestry sectors.

Beneficiaries of support are companies, regardless of their nature and of their legal form, including entities that carry out a craft activity or other activities on an individual or family basis and partnerships or associations that regularly carry out an economic activity.

The overall financial allocation is €25 million, distributed as follows: for companies affected in whole or in part by forest fires, €5 million; for companies affected in whole or in part by floods, €20 million.

Support is granted in the form of a non-refundable subsidy, up to a maximum of €140,000 per project. Eligible expenses are funded at 70%.

Updates

The following updates to this measure have been made after it came into effect.

18 September 2024

Council of Ministers Resolution 126-A/2024, of 18 September, declares a situation of calamity in Portugal due to the occurrence of major rural fires and and determines the survey of damages and the adoption of recovery and support measures for the affected populations, companies, associations, infrastructures and agricultural and natural heritage.

Council of Ministers Resolution 130-A/2024, of 27 September, delimits the territorial scope to be considered for the purposes of exceptional measures and support under Council of Ministers Resolution 126-A/2024, of 18 September.

Ordinance 277-A/2024/1, of 25 October, approves the regulation of support lines for damage caused by fires.

Use of measure

According to the Minister for Territorial Cohesion, Ana Abrunhosa, companies made 32 applications for this support system for damages totalling about €4 million (ECO, 23 October 2023).

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Only employers' organisations
  • Main level of involvement: Sectoral or branch level

Involvement

Agroforestry producers' associations and business associations are part of the working group responsible for drawing up the Revitalisation Programme for the Serra da Estrela Natural Park and other municipalities in the Beiras and Serra da Estrela Intermunicipal Community.

Views and reactions

The views of social partners on the measure are not known.

Sources

Citation

Eurofound (2023), Aid for companies affected by extreme weather events in disadvantaged regions, measure PT-2022-27/3400 (measures in Portugal), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PT-2022-27_3400.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.