The Portuguese Prime Minister Luís Montenegro praised the European Commission’s decision to authorise a 250-million-euro package in State assistance for the forest sector in Portugal.

In a post on X, the Prime Minister stressed that the assistance will enable "lifting our common heritage and make it more resilient and prepared for the future" under the "Portugal Chama" Programme.

The scheme that was now approved is to support investment in restoring the forest areas hit by natural disasters, severe weather events or other extreme events in line with the Common Agricultural Policy’s Strategic Plan for Portugal. The measure likewise seeks to compensate the owners for lost income and afforestation of both agricultural and non-agricultural land.

The assistance is paid in direct grants via fixed premiums given for a period between 15 and 20 years. Afforestation premiums for afforestation for owners to quit their agricultural activity or undertake to maintain new forest areas are envisaged, as are premiums to recover forest potential following adverse situations.

The scheme is cofounded by the European Agricultural Fund for Rural Development up to 21.9 million euros and will be in force until 31 December 2029.

In the assessment carried out, the European Commission considered that the assistance is necessary, suited, and proportional to encourage afforestation, with a limited impact on competition and trade exchanges between Member States.

The approval comes in a context of strong pressure on Portuguese forests in the wake of the severe stores of the start of the year that caused significant damage in various parts of the country.