The Government of Spain to allocate €700 million to the Generalitat Valenciana to meet the extraordinary expenses incurred as a result of the DANA

Through the Government Delegate Commission for Economic Affairs (CDGAE), the Government of Spain has agreed to allocate €700 million to the Valencian Community from the 2024 Autonomous Community Financing Fund to cover the extraordinary expenses incurred by the Generalitat due to the emergency situation resulting from the DANA recorded between 28 October and 4 November of this year.

This agreement is approved in accordance with the Tenth Additional Provision of Royal Decree-Law 7/2024, of 11 November, adopting urgent measures to promote the Immediate Response, Reconstruction and Relaunching Plan to repair the damage caused by the Isolated Depression at High Levels (DANA) in different municipalities between 28 October and 4 November 2024.

Already in the previous Delegate Commission it was noted that funds could be allocated in CDGAE agreements to finance the extraordinary expenses issued in response to the emergency situation resulting from the DANA at the end of October.

Thanks to this agreement, the Generalitat Valenciana will be allocated €700 million from Tranche III, via the Autonomous Community Liquidity Fund (FLA) compartment of the Autonomous Community Financing Fund, to cover the financing needs of the 2024 deficit corresponding to the extraordinary expenses implemented by the Valencian Community to deal with the effects of the DANA. The endowment of Tranche III of the Autonomous Community Liquidity Fund Sub-Fund for the Valencian Community will thereby be increased by the aforementioned amount.

These funds can be paid directly to the autonomous community, exclusively to cover the aforementioned extraordinary expenses.

This agreement thereby responds to the request submitted by the Community of Valencia for financing for the extraordinary expenses incurred during 2024 due to the emergency situation resulting from the DANA.

Drawdowns of funds from the FLA sub-fund of the 2024 Regional Government Financing Fund under this agreement will be subject to a fixed interest rate of 0% per annum.

Measures to mitigate the effects of the DANA

Between 28 October and 4 November 2024, a high intensity DANA caused major floods that led to serious personal and material damage, with the most affected autonomous community being the Valencian Community. In response to this situation, the Government has adopted a series of measures aimed at mitigating the damage caused, addressing the needs of the affected population and restoring damaged infrastructure, goods and services.

The approval of this agreement adds to the measures put in place by the Government to alleviate the effects of this unprecedented natural disaster.

The Government has approved three royal decrees with very powerful measures that mobilise a total of €16.6 billion, and which also provide for direct aid that the victims will not have to pay back and will receive promptly, without red tape and bureaucracy.

Measures have also been put in place to support other administrations, such as local councils, as the first administrations to attend to those affected by the DANA.

Non official translation