Portugal is experiencing one of its worst droughts in decades, with over 90% of its territory facing severe or extreme conditions as of early 2026. This crisis has propelled the country to the forefront of European Union discussions on reforming the Common Agricultural Policy (CAP) to better address climate change.
The Portuguese government has called for greater flexibility in CAP funds to support farmers grappling with water scarcity and crop failures. Agriculture Minister Maria do Céu Antunes has argued that current EU rules are too rigid for southern member states facing acute climate pressures.
This stance has found support from other Mediterranean nations like Spain, Italy, and Greece, but faces resistance from northern EU countries concerned about diverting funds from existing subsidy structures. The debate centers on whether the CAP, which consumes about one-third of the EU budget, should shift more significantly from direct income support to funding for climate adaptation.
European Commissioner for Agriculture Janusz Wojciechowski acknowledged the need for review in a recent statement, noting that climate vulnerability assessments for fund allocation are under consideration. The Portuguese case is likely to influence negotiations for the post-2027 CAP framework.
