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Edurne Martínez
Madrid
Tuesday, 5 November 2024, 16:12
The Spanish government has announced a raft of aid measures worth 10.6 billion euros to help families, business owners and workers affected by the floods that devastated Spain's southeast last week.
Prime minister Pedro Sánchez made the announcement during a cabinet meeting he chaired, with the aid package to help people in 78 flood-hit municipalities. The most-affected region of Valencia will receive the most amount of the aid, with 75 municipalities included in the government's aid package. There are also two municipalities in Castile-La Mancha and one in Andalucía included.
Disability
The public aid provided for in the law for death, disability, damage to household goods and housing, without income thresholds, will be quadrupled.
The Spanish government will provide up to 72,000 euros for cases of disability, between 20,000 and 60,000 euros for the repair of damaged homes and up to 10,300 euros to replace or repair furniture, electrical appliances and household goods. The government will also provide up to 37,000 euros to repair residents' associations.
Aid for small businesses
Under the package, there will be 838 million euros for small businesses and self-employed workers in the most severely affected areas. The aid will amount to 5,000 euros for the self-employed and between 10,000 and 150,000 euros for businesses, depending on their turnover, and will be paid out in less than a month, benefiting some 65,000 self-employed workers and some 30,000 companies.
Extraordinary temporary disability
An extraordinary temporary disability is granted for workers and the self-employed who have been affected physically or psychologically as a result of the Dana storm. As it is considered a workplace accident, it guarantees 75% of their salary from the first day of disability.
Benefit for the self-employed
This benefit is 70% of the contribution base for self-employed workers who have been forced to stop or suspend their work. They will be able to access the benefit even if they do not have the minimum contribution period required and without it reducing their benefits in the future.
Increase in the minimum living income
There will be a 15% increase for three months for people receiving minimum living income or non-contributory pensions.
Immediate payment of compensation
The government will start paying out the first compensation payments to families and companies who have lost their vehicles on Wednesday 6 November.
Dana fund
A Dana fund worth five billion euros has been created for companies and the self-employed. The first portion, for one billion euros, was approved this Tuesday 5 November.
Exemption from contributions
Thanks to the labour reform, affected companies that temporarily suspend the activity of their workers through an ERTE will be exempt from paying 100% of the Social Security contributions of the workforce, at least until February 2025.
Mortgage moratorium
Thanks to an agreement between the banks and the Spanish government, Spaniards and small business owners with a mortgage or consumer loan will be able to postpone full payment of their loans for three months, and pay only interest for an additional nine months.
Other measures
- IBI property tax exemption for the year 2024
- IAE economic activities tax reduction for the year 2024
- No fees will be paid at the traffic office or at the police when processing the deregistration of damaged vehicles or replacing driving licences and ID cards
- Personal injury allowances are exempt from personal income tax
- Postponement of the second payment of the tax return until 2025 for those affected by the Dana, benefiting 200,000 taxpayers
- Reduction in personal income tax and IVA for farms and agricultural activities in affected areas
- The Spanish government will pay 100% of the emergency expenses incurred by affected municipalities. Up to 50% of all the work they have to carry out in the coming months and years to repair infrastructures, facilities and services such as roads, sports centres and civic centres will be paid. They will be compensated for the municipal taxes they lose
- Courts and teams of notaries and land registrars in affected areas will be supported with reinforcement offices in a bid to support local officials in help people's claims and speeding up bureaucracy
- A commission will be set up to coordinate reconstruction work
- Mechanisms to strengthen bilateral cooperation with the regional governments affected, especially the government in Valencia
- Request to the European Commission for financial assistance from the European solidarity fund. Request for approval by the council and the European parliament - as a matter of urgency - of a new regulation called 'Restore', which will allow reprogramming of ERDF and ESF+ cohesion funds to devote part of their resources to alleviating the damage caused by natural disasters
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