Portugal's Government to Fully Fund Reconstruction of Homes Damaged by Wildfires
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Portugal's Government to Fully Fund Reconstruction of Homes Damaged by Wildfires

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Summary:

  • The government will fully fund reconstruction of homes up to €150,000.

  • Funding for projects exceeding this amount will cover 85% of costs.

  • Support is limited to permanent residences, excluding other properties.

  • Damage assessments are ongoing in 69 municipalities.

  • Farmers can receive up to €6,000 in aid for damages.

Full Funding for Home Reconstruction

During a press conference following the Council of Ministers, Manuel Castro Almeida announced that the reconstruction and rehabilitation of homes valued up to €150,000 will be fully funded. For projects exceeding this amount, funding will cover 85% of the costs.

Image Photo: Rodrigo Antunes - Lusa

Support for Permanent Residences Only

In the wake of the wildfires that affected northern and central Portugal, the government emphasized that financial support is limited to the reconstruction of permanent residences, excluding other types of properties. Homeowners or municipal authorities will be responsible for the reconstruction of non-permanent homes, as Coordination and Regional Development Commissions are not designated as contractors.

Damage Assessment Underway

The government is currently assessing damage across 69 municipalities and 291 parishes, expecting to complete 90% of assessments by next week. While the number of affected homes and businesses is still being determined, it is estimated to be over 50 and under 100.

Comprehensive Support Measures

In addition to housing support, Almeida outlined assistance for families in need, particularly those reliant on subsistence agriculture. This includes a differentiated exemption from social security contributions and enhanced social action support.

A simplified lay-off mechanism will be introduced to assist companies in crisis, alongside extensions for tax compliance deadlines due to the impacts of the fires. Additionally, a cash support line will be established for affected businesses.

Aid for Farmers

Recognizing that agriculture suffered significant damage, the government will provide up to €6,000 in special subsidies for farmers, including those without documentation. Support will also extend to replacing livestock and repairing agricultural machinery.

Environmental Recovery Support

The government plans to allocate €30 million from the Environmental Fund early next year to support common land recovery, as well as €40 million for firefighting equipment.

Future Plans for Forest Action

Lastly, Almeida announced the government's commitment to a forest action plan to enhance the value of forests, emphasizing that a profitable forest will deter future wildfires.

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