'Dana' flooding disaster
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Spain's Prime Minister Pedro Sánchez announced on Monday this week - following a Cabinet meeting - a new set of measures to deal with the economic catastrophe of the Dana for thousands of businesses and households. The new royal decree to be made law, which will have 110 additional measures, adds nearly 3.77 billion euros of central government funding. The total pot adds up to over 14.37 billion euros to be released by the government to support those affected by the tragedy.
This temporary 'shield' of protection will be deployed, together with last week's measures already activated, to help some 400,000 workers to maintain their income, 30,000 companies to restart business activities and 100,000 households to cover their basic needs, say Moncloa (central government) sources.
-️ Extension of all housing damage allowances to homeowners who did not live in their homes but rented them out.
- Extension of compensation for loss of household goods also to tenants, and to goods that are not basic necessities.
- Immediate advance payment of 50% of this aid to all citizens who apply for it, so that they do not have to wait for their applications to be processed.
- Temporary expansion of staffing levels in government-run offices in the affected areas.
- Creation of service points in all Correos post offices.
- Opening of a network of temporary offices in the affected municipalities, of which 10 will be operational as of Monday this week.
- Temporary 30% increase in the child allowance payments for the estimated 10,000 low-income families with children living in the affected areas.
- Extension of the national scheme that operates a code of good practice with mortgages, allowing affected households to freeze their mortgages for a further 12 months after the 12 months already included in last week's royal decree.
- Some 150 state-owned dwellings located in or near the flood-damaged areas have been made available free of charge and with immediate effect to those affected.
- Twenty-five million euros to buy houses and expand the housing stock for flood victims.
-️ Reinforcement of force majeure ERTE payments to apply to all companies and workers who, although not located in the affected municipalities, have seen their businesses and jobs severely put at risk by the Dana.
- Treatment of temporary incapacity benefit to be made similar to that of a work-related accident, eliminating the requirement of a number of previous years of contributions in order to be eligible for it.
- Approval of a new extraordinary benefit for partial stoppage for the self-employed, which will help them get back on their feet over three months of this aid being paid. It will be equivalent to 50% of their contribution base.
- Prohibition of power and gas cuts to affected households.
- It is possible, at no cost to the consumer, to modify and temporarily suspend supply contracts, as well as to defer bills.
- Telecommunications operators and services are required to compensate their customers for the services they did not receive during the disaster.
- 200 million-euro direct aid line for farms that have suffered damage that prevents them from carrying out their normal, seasonal work or that have lost more than 40% of their productive potential.
- Additional ICO MAPA SAECA (three key agencies for farmers) credit line of 60 million euros for farmers and livestock breeders.
- 175 million-euro programme to repair agricultural infrastructure such as roads, terraced fields and irrigation systems to be implemented by TRAGSA.
- Activation of a first tranche of 1 billion euros of the ICO (Spain's official credit institute) credit lines reported by SUR last week, specifying a line of guarantees that will cover 80% of the total loan, so that households, companies and the self-employed can access all this aid, subsidies and compensation as soon as possible and also undertake the investments they need to recover from this disaster.
- Making more flexible the aid, implementation deadlines and project conditions for companies in the affected industries.
- Forty-five million-euro plan for the restoration of the Albufera coastal lagoon and the river basins affected by the flooding.
- Two million euros in direct aid for cinemas, bookshops and cultural institutions that have had to close their doors.
- Fifty million euros from SEPE (Spain's State employment service) to recruit unemployed people in the areas affected by the Dana to undertake reconstruction work there.
- Unpaid and non-recoverable paid leave to cover the absence of workers for exceptional reasons.
- The MECUIDA Plan, a nationwide plan in law that guarantees the right to adapt or reduce working hours when exceptional or extenuating circumstances occur.
- Preferential telecommuting where possible.
- Streamlining of ERTE procedures and ERTE beneficiaries will receive 70% of the regulatory base allowance for the entire duration of the benefit.
- Domestic workers will be eligible for protection measures for reasons related to the Dana with coverage equivalent to that of other workers.
- Any unfavourable measure resulting from the exercise of the rights provided for in the new rule will be null and void and will lead to the repayment of the aid.
- 500 million euros to finance a 'sludge action plan' to remove accumulated debris and repair water networks in affected municipalities.
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