The EU executive proposed the amount in its first meeting after the summer break. It is expected to be voted through by the European parliament, which resumes session next week, and then by EU governments.

"Today's decision expresses the Union's financial solidarity with the people of Portugal," said regional affairs commissioner Michel Barnier, who will travel to Portugal on Thursday to visit several of the damaged areas.

Brussels says the money should cover some 40 percent of expenditure by Portugal which can be supported by EU aid.

According to preliminary estimates from Lisbon, forest fires which have killed 18 people in recent weeks and devastated hundreds of thousands of hectares of Portugal, have caused nearly a billion euros' worth of damage.

The EU aid is aimed at paying for emergency services and initial costs of the blazes, such as temporarily rehousing people and restoring basic utilities.

Budget commissioner Michaele Schreyer, noting the speed with which the EU executive had agreed its aid proposal, called on the parliament and EU governments to also act rapidly.

"I call upon the Council (of EU member states) and Parliament to take their decision with the same expediency in order to allow the funds to reach Portugal quickly," she said.

Assuming their agreement, the funds are expected to be released by mid-October, the commission said.

The European solidarity fund for catastrophes was launched after the devastating floods in central Europe and the south of France in 2002. Its budget still has nearly 950 million euros available for 2003.

Barnier -- who was also expecting a formal request from French Prime Minister Jean-Pierre Raffarin for EU aid for fires in the south of France -- said the fires highlighted the need for a policy to prevent disasters as well as help pay for them once they have occurred.

Specifically he called for Europe to set up a joint civil protection force, with the possibility of EU member states to establish specialist national units depending on their requirements.

"At the moment we are talking about cure, but in the long run one of the priorities of regional policy should be prevention," he said.

TERRA.WIRE