1. Context and Rationale

Decree-Law no. 111/2026, of 5 June, issued by the Presidency of the Council of Ministers, establishes an exceptional and temporary regime in response to the severe economic damage caused by Storm Kristin, which affected several municipalities in mainland Portugal in early 2026.

The Decree-Law extends the existing support framework by creating two distinct instruments for beneficiary entities of European funds and repayable subsidies under the energy efficiency schemes whose registered office or relevant co-financed activity is located in the municipalities covered by the state of calamity declared as a result of the storm. 

2. Scope of Application

The exceptional regime applies to beneficiary entities whose registered office or relevant co-financed activity is located in the municipalities covered by the state of calamity declared in connection with Storm Kristin.

The support is not automatic and requires the submission of a formal application to the competent managing authorities, which will assess eligibility on a case-by-case basis.

3. Support Measures

The Decree-Law provides for two distinct support instruments:

a) Suspension of European fund recovery proceedings

Recovery proceedings for European funds received improperly or without justification may be suspended for a period of six months. The suspension covers operations under the following programmes:

• Portugal 2030;

• Asylum, Migration and Integration Fund programme (AMIF 2030);

• Other programmes covered by the state of calamity.

b) Deferral of repayable instalments under energy efficiency schemes

The Decree-Law also provides for a six-month deferral (extendable by an equal period) of the enforceability of instalments relating to repayable subsidies granted under energy efficiency schemes, due on or after 28 January 2026, within the framework of the NSRF (QREN) or Portugal 2020. The deferral does not entail the application of interest or any other penalty to the beneficiary entities.

4. Extension and Duration

The Decree-Law provides for the possibility of extending the suspension and deferral measures for a further six months. The measures remain in force until 31 December 2026, without prejudice to any extension provided for therein.

5. Entry into Force

Decree-Law no. 111/2026, of 5 June, entered into force on the date of its publication in the Official Gazette (Diário da República).