Spanish Government Approves Extensive Aid Package for DANA Disaster Victims
In response to the devastating effects of the DANA environmental disaster, the Council of Ministers of Spain has approved an emergency Decree Law aimed at providing comprehensive economic, labor, and tax aid for the affected individuals and businesses. The announcement was made by President Pedro Sánchez at a press conference held in Moncloa, where he detailed a substantial financial commitment totaling 106 billion euros. This initial response seeks to assist approximately 30,000 businesses and countless families in rebuilding and recovering from the destruction.
The government has officially designated severely impacted regions in Valencia, Castilla-La Mancha, Andalusia, Catalonia, and Aragon as emergency zones, previously referred to as catastrophic zones. Alongside the financial assistance, a coordinated plan for immediate response, reconstruction, and revitalization of the Valencian Community will be initiated in three distinct phases.
Sánchez acknowledged the depth of the crisis, admitting that while a large number of professionals and machinery have been deployed, there are still many individuals and families to locate and provide support to. Reflecting on past crisis management experiences, particularly from the pandemic and the La Palma volcano eruption, he assured that future measures will be improved and refined.
The financial assistance includes quadrupling public aid that extends beyond income thresholds. For home reconstruction, families can receive between 20,000 and 60,000 euros, with additional reimbursements for furniture or appliance repair reaching up to 10,300 euros. Vehicle compensations are also being addressed through the Compensation Consortium, which will issue payments 20% higher than standard vehicle appraisals.
Support for self-employed individuals and businesses is a critical aspect of the aid package, with direct grants of 10,000 to 150,000 euros available based on operational volume. Additionally, simplified procedures for aid disbursement are anticipated, with funds expected to be received within 30 days.
The government has also introduced temporary incapacity benefits for those unable to work due to physical or psychological impact from the disaster, providing 75% salary compensation from day one. Moreover, self-employed workers whose operations are suspended will qualify for benefits equating to 70% of their contribution base, even if they do not meet the typical minimum contribution period.
To further bolster businesses, an additional 5 billion euros in guarantees has been announced through the ICO, beginning with an initial tranche of 1 billion euros. Notably, companies utilizing ERTE (temporary employment regulation) to suspend staff will not be required to pay Social Security contributions until at least February 2025.
For the most vulnerable populations, a 15% increase in the minimum vital income and non-contributory pensions will be implemented for three months. Furthermore, the government has committed to fully covering emergency expenses incurred by affected municipalities, including debris removal and the provision of drinking water.
With regard to housing concerns, families and businesses burdened by mortgages will receive relief through a deferment plan, allowing them to postpone full payments for three months while only paying interest for an additional nine months.
Tax measures have also been outlined, providing exemptions and reductions to lessen the financial strain on those affected by the disaster. The Valencian Generalitat has been authorized to use resources for urgent expenses without limitations and to exceed deficit objectives due to the DANA disaster.
The Spanish government is also in active discussions with the European Commission to secure further assistance through the European Solidarity Fund and other community support mechanisms.
Additionally, both the Congress and Senate have allocated a combined total of 45 million euros in aid for DANA victims, reflecting a strong commitment to addressing the short-term needs of those impacted by this environmental crisis. This financial support includes 15 million euros from Congress and 15 million euros from the Senate's budget surplus, all aiming at facilitating recovery efforts for the affected regions.
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