The Government of Spain earmarks a further €2.274 billion to help families, companies and workers affected by the DANA

Moncloa Palace, Madrid

The Minister for Economy, Trade and Business, Carlos Cuerpo, and the Minister for Education, Vocational Training and Sports, Pilar Alegría, during the press conference after the Council of Ministers (Pool Moncloa / Jose Manuel Álvarez)

The Council of Ministers has approved a new set of urgent measures in the framework of the Plan for the Response, Reconstruction and Relaunching of the areas affected by the DANA. This third aid package, announced yesterday by the President of the Government, Pedro Sánchez, totals €2.274 billion. Together with the two previous decrees that make up this plan, the investment has now reached almost €16.65 billion.

"Many people have lost everything because of this DANA, which is why this Government has been, is and will always be by the side of the Valencian people, who have the right to look to the present and the future with hope," said the Minister for Education, Vocational Training and Sports and Spokesperson for the Government, Pilar Alegría.

New aid to speed up the return to normality

The Minister for Economy, Trade and Business, Carlos Cuerpo, has stressed that the goal is to "deepen and complement all the aid" already approved to return to normality "as quickly as possible".

Direct aid for the purchase of vehicles

The Minister for Economy, Trade and Business, Carlos Cuerpo, during his speech at the press conference after the Council of Ministers | Pool Moncloa / Jose Manuel Álvarez

One of the pillars of the new package is the Plan Reinicia Auto+, endowed with €465 million, to replace passenger cars, vans, light vans and motorbikes. The aim, as the minister explained, is to supplement the aid that those affected are already receiving from the Insurance Consortium to speed up the renewal of the vehicle fleet "that has been damaged or has disappeared altogether".

The grants - which do not have to be repaid - are divided into two categories, one for new vehicles and one for second-hand or used vehicles up to three years old. Within the first category, grants will be of €10,000 for electrified vehicles and €5,000 for combustion and hybrid vehicles. The grants will be for €2,000 if the vehicles are not new. The same differentiation is established for the purchase of motorbikes: for new motorcycles, the aid will be €2,000 for electrified motorbikes and €1,000 euros for combustion or hybrid motorcycles, and the amount will be half the amount for second-hand or used motorbikes.

An additional €1,000 is provided for situations of reduced mobility.

New lines for SMEs and the self-employed

Carlos Cuerpo also highlighted the measures contained in the decree aimed at reactivating the productive fabric. These are new lines of support for SMEs and the self-employed, with a special focus on the industrial, tourism and small business sectors. The objective is to cover all the needs that companies and the self-employed may have, from meeting short-term maturities to the investment required to replace machinery or acquire high-tech equipment.

These lines will also be subsidised in terms of interest rates. "We are talking about zero-rate lines, which is an additional element of advantage so that our SMEs and the self-employed can get back on their feet", the minister pointed out.

Grants for school supplies and cultural organisations

The regulation also includes aid of up to €600 for families to purchase school materials and textbooks, and measures to support the cultural sector. It also establishes aid for sports organisations and €3 million for people with disabilities.

Among other complementary actions to those already adopted by the Executive in previous weeks, the regulation also reinforces the 'social shield' against the DANA by extending aid for death and for damage to housing and belongings to people other than cohabitants.

New paid leave for weather emergencies

To strengthen the protection of workers, the decree includes a number of changes in the areas of labour and risk prevention in the event of weather emergencies.

To this effect, a new paid leave of up to four days is created for workers who are unable to attend work physically or remotely. After these four days, companies can apply for the ERTE of force majeure. "We are providing security for possible future events in relation to the casuistry in this type of situation," said Carlos Cuerpo.

It will also be mandatory for collective agreements to include protocols for dealing with such situations.

Impact of the DANA in Valencia

During his appearance, the Minister for Economy, Trade and Business referred to the increase in the frequency and severity of climatic events in recent decades. In the case of Spain, related costs will exceed €7 billion in 2023, according to Eurostart data.

The minister reiterated that we must continue to make progress in our efforts to mobilise, finance and invest to adapt and be more resilient in the face of this type of extreme phenomena, and to minimise the impact when they occur. He also stressed the need to adopt measures to prevent climate change, which is the cause of the severity of the DANA.

Data from the Consorcio de Compensación de Seguros show that 214,000 claims have already been received, four times more than those registered after the DANA in 2019, almost ten times more than after the Lorca earthquake, and almost 200 times more than after the La Palma volcano.

Carlos Cuerpo specified that the DANA has affected more than 69,000 homes, more than 125,000 vehicles and 12,500 businesses, stressing the destruction of productive capital it has produced. The impact of the DANA on Valencia is estimated at 4% of its economic activity. The minister pointed out that the shock initially meant a drop of six points in activity, which has since recovered progressively thanks to the efforts being made, to two or three points below one hundred percent.

In this respect, the minister acknowledged that there is still a long way to go to close the gap and ensure normality for the entire affected province, and that monitoring will continue to detect the need for intervention and aid.

Regarding the progressive improvement after the initial impact, the Corps pointed to two vectors to minimise the negative consequences on the economy. One: immediacy, urgency and speed of response. Two: a high level of ambition and a comprehensive response.

The immediacy, he argued, "makes it possible to avoid closures and structural job losses" and to offer an integrated response, which includes compensation from the Insurance Consortium, direct aid and elements that provide liquidity (from ICO to the rest of the funds). This is what "allows businesses to continue their normal operations and avoid possible restructurings and default problems, and, therefore, keep the Valencian economy afloat".

The minister underlined the efforts being made by the State to reach the productive fabric and Valencian households as soon as possible. The Insurance Compensation Consortium has already paid out more than €92 million in compensation. For their part, financial institutions have already received 11,500 applications for moratoriums amounting to €580 million, as well as 2,000 applications for ICO guarantees amounting to almost €220 million.

Carlos Cuerpo recalled that households, the self-employed and legal entities can request a three-month moratorium on consumer credit and mortgage loans without paying interest or principal, while ICO guarantees allow them to advance the aid to which they will be entitled.

Annual subsidy for municipalities

The Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, during her speech at the press conference after the Council of Ministers | Pool Moncloa / Jose Manuel Álvarez

The Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, has announced that the Council of Ministers has approved the annual subsidy for the Spanish Federation of Municipalities and Provinces (FEMP), which on this occasion will receive a total of €2,600,000.

This allocation, included in the Ministry of Territorial Policy and Democratic Memory's Strategic Grants Plan 2022-2024, will be used to address the institution's operating expenses for 2024, as well as to strengthen its technical organisation, develop national and European policies related to local entities, and promote activities of general interest and studies of a local nature.

Condolences for the victims of the Ibi accident

Alegría, who began her speech by reiterating the Government's commitment to the Valencian people and those affected by the DANA, also referred to the victims of the explosion at the polystyrene products factory in Ibi (Alicante) that occurred yesterday.

On behalf of the Government, the minister conveyed her sympathy, condolences and solidarity to the families of the three dead and seven injured, and also sent "a message of affection" to the factory workers.

Non official translation