Portugal Rolls Out $2.9 Billion Aid as Deadly Flooding Spreads

Portugal’s government approved a set of emergency laws to speed reconstruction after deadly flooding, clearing administrative hurdles as part of a €2.5 billion ($2.9 billion) support package in one of the largest disaster-relief efforts ever mobilized by the country.

The cabinet agreed to extend the calamity declaration until Feb. 15, citing damage from Storm Kristin and the continued risk of severe flooding as Storm Leonardo crosses the country and Storm Marta approaches the mainland. The status allows authorities to suspend normal procedures to accelerate spending and emergency response.

Three localities postponed voting tied to Sunday’s presidential runoff.

Several of Portugal’s main rivers have reached critical levels. The Douro, which runs through Porto in the north, burst its banks in numerous places, flooding riverside towns, while the Tejo rose to its highest level since 1997, according to civil-protection authorities. The Sado is at levels not seen since 1989. At least 11 people have died since last week, and as many as 1 million were left without power.

The flooding has compounded damage from last summer’s wildfires, which stripped vegetation from large areas of central and northern Portugal, increasing runoff during heavy rains. Critics at the time accused Prime Minister Luís Montenegro’s government of responding too slowly. The back-to-back disasters have intensified pressure on infrastructure and public services, underscoring the growing economic cost of extreme weather.

The government is incurring the added burden with limited fiscal headroom. Portugal is forecasting a small budget surplus this year, leaving little room to absorb large emergency outlays. Montenegro has argued swift intervention is needed to prevent longer-term economic damage, even as the government seeks to preserve fiscal credibility.

The legal package underpins the broader €2.5 billion relief effort, combining direct support for households, expanded credit guarantees for businesses and faster public investment.

Top photo: Flooding in Alcacer do Sal, Portugal, on Feb. 5. Photographer: Adri Salido/Getty Images.