Portugal enacts temporary aid regime for EU funds and energy subsidies after storm Kristin

The Portuguese government published a decree‑law in the Diário da República establishing an exceptional, temporary regime for entities whose main activity or headquarters are located in municipalities declared under a state of calamity following storm Kristin.

The regime, effective from 14 February 2026 to 31 December 2026, allows beneficiaries to request a six‑month suspension of recovery procedures for European Union funds received improperly or without justification, with a possible extension of equal length. It also permits a six‑month deferral—extendable by another six months—of repayments on refundable energy‑efficiency subsidies. The suspension covers funds from Portugal 2030, the Asylum, Migration and Integration Fund (FAMI 2030) and other programmes, but excludes the European Agricultural Fund for Rural Development (FEADER) and the European Maritime and Fisheries Fund (FEAMP). Requests must be submitted within 30 days of the decree’s entry into force, and approval depends on the absence of fraud suspicion and prior social‑security contribution exemptions. The measure aims to alleviate severe economic losses suffered by affected companies and organisations.