Government estimates that costs of storm Kristin exceed €2 billion

The assessment of the costs of the impact of Storm Kristin, although “rough”, points to a cost of over two billion euros, revealed the Minister of Economy and Cohesion on Monday in an interview on SIC Notícias TV channel. Explaining that Portugal cannot be dependent on support from the European Union (EU) Solidarity Fund, Manuel Castro Almeida confirmed that the country will apply for this instrument, but that the financial effort from the State Budget will be much higher.

“We are finishing the cost assessment, which is still very rough, but it will be well over €600 million. It is well above €2 billion”, the minister said in the interview.

To access the EU Solidarity Fund, losses would have to amount to at least 1.5% of the region’s GDP. Castro Almeida gave the figure: €600 million. “The losses are much higher”, he said, adding that the country has 12 weeks to apply for the European instrument. “When we make the request, it will take months to get a response”, he warned.

“They give us 12 weeks because we need to provide a detailed description of the damage, which is currently being assessed”, explained the Minister for the Economy and Territorial Cohesion, assuring that the Government will not “reach the 12-week limit” and will submit the application “as soon as possible”.

“It is a given that we will submit this request. But there is no point in waiting for this money because very little will come”, he pointed out. Castro Almeida gave an example: “If we have losses of one billion euros, what would come from the European Union would be 25 million. It’s a drop in the ocean, but of course we’re going to ask for that money.”

“We will not turn down any [money], but that is not what will solve our problems”, said the Minister of Economy and Territorial Cohesion, who on Monday met with the Minister of Infrastructure and Housing and the head of the Task Force for the Recovery of Areas Affected by Storm Kristin.

“The mobilisation of the State Budget is much higher than what will come from this European solidarity, although we will try to use our structural funds, the Cohesion Fund, and adapt it to be able to provide support”, he added.

It should be noted that the budget surplus for 2026 is guaranteed thanks to €311 million in projects financed by loans from the Recovery and Resilience Plan (PRR) that have been cancelled – expansion of the Lisbon Metro Red Line and the Hospital de Todos os Santos.