Spain's Comprehensive Response to DANA: New Support Measures Announced by President Sánchez
President Pedro Sánchez of the Spanish Government has unveiled a significant new package of measures aimed at assisting those impacted by DANA (the Spanish term for the recent severe weather events). This announcement follows a previous aid package disclosed last week, showcasing the government's commitment to providing support during this challenging time. Among the measures included in the new initiative are the approval of work permits at 100% salary for affected individuals and the suspension of principal and interest payments on loans supported by ICO (Instituto de Crédito Oficial) COVID and ICO Ukraine lines, totaling an impressive 3.765 billion euros.
Sánchez conveyed a strong message from Moncloa, emphasizing that the Government of Spain will remain dedicated to assisting affected citizens for as long as necessary, even when media attention shifts. "We believe in the Welfare State and in robust public services," he asserted.
In total, the new package encompasses over 37 billion euros, which also integrates educational initiatives focused on emergency response and civil protection measures. The President detailed that the package entails 110 new measures designed to bolster the social safety net and facilitate the reconstruction of the affected areas.
Significantly, the government plans to eliminate bureaucratic obstacles and expand the benefits available to a broader range of affected individuals. Property owners and tenants of affected properties will also be eligible for financial assistance, which now includes compensation for the loss of belongings beyond just essential goods.
In an effort to expedite the application process, all citizens requesting aid will automatically receive an advance of 50 euros, which aims to reduce processing times, especially in light of staffing increases dedicated to managing requests. Furthermore, post offices in the affected areas will serve as dedicated offices for those impacted by DANA, with ten locations already established to provide on-the-ground support.
To assist struggling households, the good practices fund for mortgages has been extended, allowing affected families to freeze their mortgage payments for up to two years. Specifically, households with a mortgage of 600 euros will not need to make any payments for the initial three months, followed by a reduced payment of 300 euros for the subsequent nine months, with an option to extend those terms for an additional year.
Housing support is also a priority, with 1,500 public homes available for affected individuals at no cost in nearby regions. Companies that have experienced operational disruptions due to DANA events can apply for ERTE (temporary layoff) measures, alleviating the need to resort to layoffs during this critical period. Notably, businesses that depend on other affected entities can also apply for such support, regardless of their physical location.
In terms of utility provisions, there will be no interruptions in electricity or gas services in the affected regions, and residents will receive compensation for the time services have been unavailable. This package impacts approximately 400,000 individuals and 100,000 households.
The agricultural sector, heavily affected by the torrential rains, will benefit from a dedicated aid line amounting to 200 million euros for operations reporting losses exceeding 40 percent or those unable to harvest properly. Additionally, funds of 60 million and 160 million euros will be allocated for road, ditch, and irrigation system repairs. A further investment of 45 million euros will support the ecological recovery of the Albufera of Valencia and river basins, alongside allocations to assist cultural spaces such as cinemas and bookstores.
Addressing pressing environmental concerns, Sánchez announced a comprehensive plan to remove sludge, currently totaling thousands of tons, with a budget of 500 million euros earmarked for the removal of this waste, repairing sewage and water supply networks, and cleaning sewer systems. This initiative will involve collaboration with scientists, officials, and private companies to avert any public health crises.
Furthermore, Sánchez confirmed that the deployment of military personnel in Valencia has increased from 15,000 to 18,500, including 3,800 vehicles across land, air, and sea. He also highlighted that nearly the entire electrical infrastructure has been restored, with 95% of telecommunications antennas repaired, ensuring that access to medications through pharmacies is reliable.
In the previous week, the Council of Ministers launched an initial aid package of 106 billion euros targeted at 78 municipalities across Valencia, Castilla-La Mancha, and Andalusia, affected by DANA. This assistance includes direct support for citizens and businesses, tax exemptions, and social security measures, as well as ICO credits, and support for local administrations.
The President underscored that this represents the first phase of a broader response, reconstruction, and relaunch plan aimed at enabling municipalities to recover and transform in response to climate emergencies. The urgency of these measures is evident, with 400 companies submitting requests for ERTE affecting 9,000 workers, 1,800 people seeking aid for property damages, and over 120,000 applications submitted to the Insurance Consortium, of which 80% are already being processed.
The direct aid measures include various subsidies for households and the self-employed, with rapidly available support designed to minimize bureaucratic delays. Noteworthy allocations include 70,000 euros for disability cases, up to 60,000 euros for home repairs, and 10,300 euros for furniture and appliances. An impressive 838 million euros will be directed towards SMEs and self-employed individuals, with financial support expected to be disbursed within a month.
For social security, extraordinary temporary disability measures will provide 75% salary coverage from the first day of medical leave for employees affected by DANA. Self-employed individuals facing income loss can access a cessation of activity benefit, supplemented with a 70% contribution base. Additionally, the minimum vital income and non-contributory pensions will see a 15% increase over the next three months, with the potential for extension.
To further assist families and businesses, the Compensation Consortium has begun indemnifying losses related to vehicles, with payments exceeding assessed values being offered. A line of guarantees worth 5 billion euros has been established for those requiring financial support for home or business repairs. Sánchez emphasized the efficient availability of these loans, with an initial 1 billion euros set to be activated shortly.
Lastly, the government has implemented a series of tax moratoriums and exemptions, including the postponement of rent payments and exemptions on IBI and IAE for damaged properties. With a partnership with banks, affected households and SMEs can postpone their loan payments for up to a year to help maintain economic stability until a return to normalcy is achievable. All details regarding these measures can be found on the official government website.
Related Sources: