Storms: Government Launches up to €400 Million for Central Portugal Businesses with Unspent PRR Funds
An Instrument Designed for the Crisis
The Government will create, still in February, a new financial instrument exclusively for businesses in the Central region affected by the recent storms. The IFIC - Financial Instrument for Innovation and Competitiveness - will be funded with unspent funds from the Recovery and Resilience Plan (PRR) and could mobilise investments of up to €400 million, of which €150 million in public funding.
| Indicator | Value |
|---|---|
| Total mobilisable investment | €400M |
| Available public funding | €150M |
| Non-repayable grant rate | 30% to 50% |
The announcement was made by the Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, at a meeting held at the Technological Centre for the Mould, Special Tooling and Plastics Industry (CENTIMFE), in Marinha Grande, attended by local authority representatives, CCDR-C, IAPMEI, the Intermunicipal Community of the Leiria Region, business and sector associations, and entrepreneurs.
According to Castro Almeida, the new programme will constitute "a new source of funding", designed to accelerate economic recovery and strengthen regional competitiveness. The Government also intends to adapt eligibility rules to the real needs of the local business fabric, establishing them in dialogue with companies and associations in the region.
PRR: Unspent Money Redirected to Recovery
One of the distinctive features of this instrument is its origin: the funds come from PRR allocations that were not executed under the original programmes. Rather than returning these amounts, the Government chose to reallocate them to an emergency support line specifically targeting the impact of storms in the Central region - one of the areas most affected by extreme weather events in recent weeks.
The Secretary of State for Industry, João Rui Ferreira, emphasised that the instrument is particularly oriented towards industry and aligned with regional and sectoral needs - a sign that the focus will not only be on immediate reconstruction, but also on modernisation and strengthening the resilience of the productive fabric.
Business Leaders Raise Unresolved Issues
At the meeting, business representatives did not just welcome the announcement: they took the opportunity to flag problems still unresolved on the ground. One of the most pressing is the high cost of emergency generators, compounded by the lack of medium voltage normalisation, a situation that continues to penalise the activity of many companies in the region.
The Mayor of Marinha Grande, Paulo Vicente, welcomed the announcement, stating that the new programme represents "a concrete sign of recognition of the difficulties experienced by companies in our region and the need for an exceptional response".
The Scale of Damage: One Billion in Losses, 11,000 Housing Support Requests
The figures released by the Minister of Economy reveal the magnitude of the crisis:
| Indicator | Value |
|---|---|
| Business support requests | 4,000 |
| Declared losses | ~€1 billion |
| Housing support requests | 11,000+ |
These figures underscore the urgency of the announced measures and the scale of the challenge the country faces in recovering the most affected areas. With the IFIC to be launched by the end of February, the Government is betting on a swift response - and hopes that Central region businesses can access funding in the first half of 2026.
Get the latest tax news
Subscribe to our newsletter and receive articles, tax alerts and tips directly in your inbox.
Related articles
IRS Jovem: Automatic Tax Filing Arrives This Week
Young taxpayers can now access automatic IRS filing from April 1st. Learn what changes in the IRS Jovem regime.
IRS Refund in 2026: Why You Might Receive Less This Year?
Many taxpayers will notice a difference in their IRS refund this year. Find out why and how to maximise what you receive.
How to Pay Less Tax in 2026: The Complete Guide for Portuguese Companies
Complete tax planning guide for Portuguese companies in 2026. IRC, tax benefits, SIFIDE, RFAI, SME strategies and more.
