Government of Spain allocates some 10.6 billion euros to assist with DANA recovery

Prime Minister Pedro Sánchez has confirmed that the first package of measures aimed at alleviating the damages of the DANA storm, which amounts to some 10.6 billion euros, has been approved by the Cabinet, financial assistance that will benefit a total of 75 municipalities in the Comunidad Valenciana as well as two in Castilla-La Mancha and one in Andalucía.

The public aid provided for in the law for death, disability, damage to property and housing has been quadrupled and will be without income thresholds. The Government of Spain will transfer up to 72,000 euros for cases of disability, between 20,000 and 60,000 euros for the repair of damaged homes, up to 10,300 euros to change or repair furniture, appliances and property, and up to 37,000 euros to repair elements of the neighbourhood communities.

Direct aid of some 838 million euros will be made available for SMEs and the self-employed in the most seriously affected areas. This will amount to 5,000 euros for the self-employed and will range between 10,000 and 150,000 euros for companies, depending on their turnover. To receive them, it will be enough to confirm bank details and the money will be transferred to those accounts within a month, aid which will benefit some 65,000 self-employed workers and some 30,000 companies.

An extraordinary temporary disability assistance has been created for workers and self-employed persons with physical or psychological damage caused by the DANA storm. As it is considered an accident at work, it guarantees 75% of their salary from the first day of disability.

A “DANA guarantee line” worth five billion euros has also created for companies and self-employed workers, of which a first tranche of 1 billion euros has been approved immediately. In addition, an agreement has been reached with financial institutions so that citizens, SMEs and the self-employed who have a mortgage or a consumer loan will be able to postpone the full payment of their loans for three months and pay only the interest for an additional nine months.

In the employment field, ERTEs will be enabled due to force majeure with 100% discounts on Social Security contributions, while self-employed workers will have the possibility of requesting a benefit for cessation of activity that will correspond to 70% of their contribution base, even if they have not completed the minimum 12 months required by law to access it.

Regarding people who receive the minimum living income (IMV) or some non-contributory benefit, they will see their benefits increased by 15% over the next three months and there will be a possibility of extending this measure for a longer period depending on the needs.

Sánchez also explained that the Insurance Compensation Consortium – which depends on the Ministry of Economy – will begin to pay the first compensations today (Wednesday) to those families and companies that have lost their vehicle and they will be 20% higher than the appraisal value of each vehicle. “We are aware that for many families and for many self-employed and SMEs, having a car is essential to recover their normality,” stressed the president.

The Cabinet has also approved a broad package of moratoriums and tax exemptions, such as delaying the second payment of the income tax return or any other tax that they have pending with the Tax Agency, in addition to not having to pay the IBI or the tax on economic activities of the damaged properties or the processing fees for the deregistration of vehicles or the issuance of official documents that have been lost. Sánchez has also explained that 100% of all emergency expenses will be paid to the municipalities affected by the flood and 50% of all infrastructure repair works in the coming years. Likewise, they will be compensated for the taxes that they stop collecting and the spending limit will be increased.