The Government of Spain approves a new package of €2.274 billion to speed up the recovery of areas affected by the DANA

Ministers Carlos Cuerpo and Pilar Alegría answer questions from the media after the meeting of the Council of Ministers (Pool Moncloa / Jose Manuel Álvarez)

The Council of Ministers has approved a new aid package, credit instruments and legal facilities amounting to €2.274 billion, to accelerate the recovery of the areas affected by the DANA. This is the third aid package aimed at those affected by the DANA- bringing the total mobilisation to more than €16.6 billion- and comes within the framework of the first two phases of the Immediate Response, Reconstruction and Relaunch Plan promoted by the Government of Spain.

The new measures of the Royal Decree-law have three main objectives: the citizens and households affected, the vehicle fleet and the productive fabric, such that the social shield already deployed now covers more groups. A number of measures are also being taken to speed up the delivery of aid to the victims as much as possible.

Direct subsidies of up to €10,000 for the purchase of a vehicle

Along with these new measures aimed at households and workers, the 'Plan Reinicia Auto' has been approved for the renewal of the vehicle fleet damaged by the DANA, with an initial allocation of €465 million. Citizens who need to buy a vehicle will be able to receive direct aid of up to €10,000, which will not have to be repaid, and will be compatible with the compensation being paid by the Insurance Compensation Consortium, part of the Ministry of Economy, Trade and Enterprise.

Neither do the vehicles purchased need to be new, and the measure will retroactively include all vehicles purchased since 29 October 2024 to replace a damaged vehicle. These car purchase grants will be processed through car dealers. For new cars, grants of €10,000 are established for electric vehicles, €5,000 for combustion and hybrid vehicles, and between €2,000 and €4,000 for second-hand cars. For its part, the Ministry of Home Affairs will set up an extraordinary procedure to facilitate the removal of motor vehicles affected by the floods.

Support for industry and tourism

To recover and relaunch economic activity, the 'REINICIA+ Plan' is given the green light with a new line endowed with €1.2 billion, so that the self-employed and companies in the industry and tourism sector can repair their facilities and equipment, replenish their stock of products, and make new investments. Among the financing measures is the creation of the ENISA Entrepreneurship and SME Fund (FEPYME), initially endowed with €350 million, which will offer reimbursable and non-reimbursable financing to small and medium-sized enterprises, both industrial and tourist, in the affected areas.

It also includes a specific line of financing from the Fund to Support Productive Industrial Investment (FAIIP DANA), initially endowed with €650 million, which can be extended, with zero interest loans, for a term of up to 10 years and with grace periods of up to 3 years. An extraordinary line of aid is also created, focused on the recovery and expansion of the digital capacities of tourism companies (ICO-Turismo FOCIT), initially endowed with €200 million, expandable, with zero interest; and the Fund for Entrepreneurship and Small and Medium Enterprises (FEPYME) is created, which will be managed by Enisa and has an initial endowment of €303 million from the Recovery Mechanism.

€240 million line to reactivate economic activity

An additional tranche of €240 million was also approved for the ICO DANA Guarantee Line, such that the affected self-employed and SMEs can access 0% loans to relaunch economic activity, together with the launch of another ICEX line, aimed at facilitating the internationalisation of the activity of affected companies. In the procedural sphere, debtors and bidders may request that judicial and notarial auctions be cancelled for reasons related to the DANA.

Extension of aid for death and damage to housing and household goods

The Royal Decree-law modifies the DANA aid scheme to increase the number of aid beneficiaries, also recognising the right of persons other than cohabitants to obtain aid in the event of death, and for the relatives of the deceased to also receive aid for damage to the home and household goods. The deadline for applying for aid is extended to three months and a more flexible regulation for collecting data is established, while companies and self-employed workers who have started their activity this year will be able to receive the direct aid that can already be applied for at the Tax Agency. The Government will also empower civil servants from the General State Administration and local councils to process the aid for those affected.

New paid leave for weather emergencies

The regulation includes changes in labour and risk prevention in the event of climatic emergencies. To this effect, a new paid leave of up to four days is created for workers who are unable to go to work.

If this period needs to be extended, companies may apply for force majeure ERTE. The regulation also makes it compulsory for collective agreements to include protocols for dealing with these situations. The Executive will draw up a Royal Decree within 12 months to address occupational risk prevention for workers in the face of the effects of climate change. Legal proceedings for dismissal and damages due to the DANA will also have priority in the courts.

Extension of incapacity and unemployment benefit for self-employed people

In the field of employment, the exceptional consideration of temporary incapacity processes for workers and self-employed workers with physical and psychological conditions caused by the DANA, and pensions for permanent incapacity, death and survival as a result of the catastrophe, is extended until 31 December, as an exceptional situation assimilated to an accident at work.

At the same time, the improved self-employed termination benefit, which includes exemption from Social Security contributions, is extended to all those who are covered by the so-called flat-rate contribution scheme. The benefit will be recognised retroactively from 28 October. DANA payments will not count as income with regards to receiving or maintaining benefits such as the Minimum Basic Income.

New loan facility for SMEs: technology and machinery

The Royal Decree-law establishes the creation of a new line of subsidised loans of €300 million for the small and medium-sized companies affected that wish to acquire the latest technology and machinery. These loans, granted by the Centre for Technological Development and Innovation (CDTI), part of the Ministry of Science, Innovation and Universities, will allow companies to obtain up to €6 million in advantageous conditions.

Grants for school materials, sports facilities and cultural organisations

In the field of education, €17 million are earmarked for the purchase of textbooks and teaching materials. The amount of each grant will be a maximum of €600 per university and non-university student, including artistic and vocational training students. This aid, which will be of a direct nature, is compatible with other aid.

A line of €2 million has also been approved, with aid of up to €100,000, financed by the Consejo Superior de Deportes (CSD) and aimed at the repair, reconstruction or restitution of infrastructures, equipment and facilities of sports clubs and territorial federations affected by the DANA.

The new regulation also includes an allocation of €3 million from the budget of the Royal Board on Disability to support actions by local authorities in the field of universal accessibility to improve access for disabled people to public services and housing, and for the purchase of orthotic and orthoprosthetic material, among others. The text also establishes direct aid to cultural entities such as the Association of Contemporary Art Galleries of the Valencian Community (Lavac), the Union of Contemporary Artists and Gestió Cultural, to carry out advisory, recovery, safeguarding and promotional tasks related to cultural assets, contemporary artists and the music sector.

Emergency landfill sites for waste

Furthermore, emergency landfills built for the deposit of non-hazardous waste generated by the effects of the DANA will be exempted from the integrated environmental authorisation, provided that they do not exceed a total landfill capacity of 1.5 million m3 and a maximum operating period of eight months. In addition, the beneficiaries of PERTE aid for the Digitalisation of the Water Cycle, whose projects are located in the affected municipalities, may request the modification of the conditions approved at the time.

Non official translation