A European Commissioner today announced that the EC is sympathetic to the tragedy that the Portuguese people have suffered in the recent fires and offers its full support.
The European Commissioner for Economic Affairs, Pierre Moscovici, said that any public expenditure needed after the devastating fires in Portugal should be considered as "exceptional circumstances" and will not be taken into account by Brussels in its annual assessment of Portugal’s budget.
Offering an "intelligent, subtle and flexible approach to these expenses," Moscovici, said “it seems to me quite natural that, just as we have considered as ‘exceptional circumstances’ the terrorist threat in certain European Union countries, or earthquakes, as was the case in Italy, that we take a humane approach to the public expenditure by the Portuguese authorities resulting from the fires and that these are considered exceptional circumstances during the budget evaluation."
The Commissioner pointed out that it is still too early for the European Commission to give its opinion on Portugal’s budgetary plans for 2018, because it "has only just received the budget project from Portugal.”
As the 2018 budget shows a genuine budget recovery, the Commission is inclined to adopt a "human approach and an absolutely positive spirit," as it claims to have done for other member countries faced with disaster.
Moscovici said also that, at the weekly meeting commissioners on Wednesday, there was a debate on how to strengthen Portugal’s civil protection and how to show solidarity with Portugal.
"Juncker spoke with Portugal’s Prime Minister and insisted that we all get together for this effort, not only for solidarity but also to look at fire response and prevention."
Hundreds of fires that erupted last Sunday, the worst fire day of the year according to authorities, caused more than forty deaths, and forced the evacuation of villages, the relocation of the many citizens and the closure of dozens of roads.
This is positive news for António Costa, who also will be delighted that money from the so-called ‘Juncker Plan’ can be used to repair the existing damage and for any new master plan for fire defence that he should announce after the Council of Ministers meeting this coming Saturday.
Money from the Juncker Fund can be used to repair the damage caused by the fires, but it is not "the best financing tool," said the European Commission's vice president, Jyrki Katainen.
"Can the European Fund for Strategic Investments (FEIE or EFSI) be used to correct the damage caused by fires? In theory, yes, depending on the nature of the project and especially if the private sector is involved," said Katainen, adding that the European Investment Bank "has cheaper and better financial options."
The Investment Plan for Europe, known as the 'Juncker' Plan, is a €315 billion fund that ends at the end of the year. There is an add-on fund proposed: to spend a further €500 million by 2020 on sectors such as forestry, fisheries and agriculture.
