The Government said this Tuesday, February 17, that it had obtained approval from the European Commission for budgetary flexibility in expenditure on State support due to bad weather, so that it does not count towards compliance with European Union (EU) budgetary rules.
“There was general concern among everyone about the situation that occurred in Portugal. The European Commission has shown openness to using the instruments that already exist and also to considering the expenses that the State may incur in these storms and floods as expenses one-offwhich means expense that will not count towards net primary expenditure, as it is one-off”said the Minister of Finance, Joaquim Miranda Sarmento.
Speaking to Portuguese journalists in Brussels, at the end of the meeting of European Union Finance Ministers, the government official explained that, “if the expenditure was not considered as one-off – something that is normal because it is an event not controllable by the Government -, naturally, it would increase the variation in net primary expenditure, causing Portugal to move away from the trajectory of net primary expenditure” and would affect compliance with EU budgetary rules, which impose ceilings on the deficit and public debt.
“If these expenses that we are going to incur, especially in 2026, were not considered temporary – and they are, as they always are, or as a general rule, given that they are not in the direct action of the Government – naturally this would cause, in 2026, the variation in net primary expenditure to rise more than what the Government forecasts. And therefore this, naturally, By being considered temporary, it helps us comply with European tax rules, something that we also comply with due to the fact that, in 2025, we will have a budget surplus”, said Joaquim Miranda Sarmento.
to despesa one-off concerns public spending with transitory budgetary effects related to the support that the Portuguese Government is granting due to bad weather and recent storms.
Initiatives such as financial support of around 2.5 billion euros are at stake to help families, companies and local authorities rebuild homes, infrastructure and productive sectors after serious damage caused by storms Kristin, Leonardo and others.
The Government is moving forward with direct support for the reconstruction of houses worth up to five or ten thousand euros, aid for farmers with applications that already exceed 300 million euros and measures to lay-off simplified schemes that guarantee wages for workers in affected companies.
In the case of support related to houses, they are only intended for damage “to own and permanent housing”, admitted the minister, recognizing that emigrants may not be covered.
In the case of people with debts to the tax authorities, they must have their situation regularized, which means that, despite such obligations, they must provide guarantees or be “on an installment plan” to be able to access this support, he explained.
According to Joaquim Miranda Sarmento, the Portuguese Executive is now carrying out a total assessment of the losses to request more European support: “We have […] a few weeks to place the order. We will carry out this survey and then, based on this survey, the European Union will carry out the assessment”.
Still, he recalled that, “in the case of Spain, of the storms in Valencia, the total amount of support [da UE] it was around 10%.”
Sixteen people died in Portugal following the passage of depressions Kristin, Leonardo and Marta, which also caused many hundreds of injuries and displacement.
The total or partial destruction of homes, businesses and equipment, the fall of trees and structures, the closure of roads, schools and transport services, and the cut of energy, water and communications, floods and floods are the main material consequences of the storm.
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