Portugal's Recovery Efforts Post-Storm Kristin: A 4 Billion Euro Challenge

Portugal is facing over 4 billion euros in direct reconstruction costs following Storm Kristin. Economy Minister Manuel Castro Almeida highlighted the impact on the economy. Plans for new factory constructions and a government scheme to protect workers' wages are underway. The storm caused significant destruction, particularly in industrial hubs.

In the wake of Storm Kristin's devastation, Portugal faces over 4 billion euros ($4.7 billion) in direct reconstruction costs, as announced by Economy Minister Manuel Castro Almeida, who emphasized the economic impact while discussing preliminary government estimates.

Several businesses are considering constructing entirely new factories due to complete unusability of their existing ones, suggesting a prolonged recovery period. A lay-off scheme will safeguard workers' wages, covering 80% of net pay up to 2,760 euros monthly, funded by Social Security and businesses, to prevent job losses during rebuilding.

Storm Kristin swept through central mainland Portugal on January 31, causing extensive damage and loss of life. The worst-hit regions, including Leiria and Marinha Grande, are significant industrial centers. In response, the government has approved a 2.5 billion-euro package of loans and incentives to aid recovery efforts from this and other recent storms.

(With inputs from agencies.)