The storm tore through central mainland Portugal early on Wednesday, bringing winds of more than 200 km/h (124 mph) and torrential rain. At least six people were killed, while homes, factories, and key infrastructure were badly damaged. The extreme weather also knocked out power to hundreds of thousands of households, according to authorities.

Montenegro said the state-backed lender Banco de Fomento will roll out a €1 billion loan programme to help rebuild factories damaged by the storm and not insured. A further €500 million financing scheme will be made available to support businesses struggling with immediate cash-flow problems.

The remaining €1 billion in aid will go towards helping individuals recover. This includes financial support for rebuilding uninsured primary homes, with up to €10,000 available per household, as well as social security payments for people who have lost income or are facing hardship. These subsidies will be worth up to €537 per person per month, or €1,075 per family.

Montenegro also said that, because of what he described as the “exceptional circumstances”, reconstruction work will be fast-tracked, with projects exempt from licensing requirements and from prior urban planning, environmental, and administrative approvals.

Portugal has declared a state of calamity — the country’s highest civil protection alert — giving authorities wider powers to respond to major disasters. The measure allows emergency services and the armed forces to be deployed more quickly, speeds up procurement, and lets officials restrict access to badly affected areas, without limiting constitutional rights.

Almost 180,000 households were still without electricity on Sunday, as grid operator REN and distributor E-Redes worked around the clock to restore power, the companies said.