Government announces €2.2 billion aid package for DANA recovery

Measures include car replacement grants, business loans, and school supplies

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DANA aid package

The Spanish government has approved a third package of aid measures aimed at reconstructing areas affected by the recent DANA storm. Worth €2.274 billion, the measures focus on helping citizens replace damaged vehicles, providing support to businesses, and offering financial relief to families for school supplies. This latest initiative brings the total amount of DANA-related aid to €16.6 billion.

“Our aim is to deepen and complement all the efforts made so far,” said Economy Minister Carlos Cuerpo, following the Cabinet meeting. “We want to use all available resources as quickly as possible to ensure the fastest return to normality.” The approved measures are divided across various sectors, offering substantial relief to those affected by the extreme weather event.

€465 million for vehicle replacement

One of the significant components of this aid package is the “Plan Reinicia Auto”, which allocates €465 million for replacing vehicles damaged by the storm. Grants will be available for both new and used vehicles, with €10,000 offered for new electric cars and €5,000 for hybrid and combustion models. Used vehicles can receive up to €4,000, depending on the type. There are also grants available for motorcycles, with electric models eligible for up to €2,000.

Additionally, individuals with reduced mobility will receive a supplementary €1,000 to adapt their new vehicles, supported by a separate €3 million fund to enhance accessibility.

Climate leave for workers in catastrophes

The government has introduced new rights for workers, termed “climate leave”, allowing paid absence from work in the event of natural catastrophes like the DANA storm. Workers will be entitled to up to four days of paid leave, and companies may then transition affected workers into temporary redundancy schemes if necessary.

Moreover, the status of certain temporary incapacity benefits has been extended until the end of the year, covering injuries or illnesses caused by the DANA, including for those already receiving permanent incapacity pensions.

Cogesa Expats

Business and educational support

The government has also approved a new zero-interest credit line of €1.44 billion for small and medium-sized enterprises (SMEs) to repair facilities and invest in new equipment, with a special focus on industries like tourism and local commerce. Within this amount, €240 million has been earmarked for the reactivation of local businesses impacted by the storm.

Furthermore, a separate €19 million fund has been established to cover the cost of textbooks and school supplies for families in the affected areas. The measures also allow for extended eligibility, meaning that family members of deceased individuals can receive additional housing-related assistance.

Overview of the First Two Aid Packages

Prior to this latest initiative, the government had approved two earlier aid packages aimed at addressing the immediate and mid-term needs of those impacted by the DANA storm.

The first aid package, valued at €8.5 billion, focused primarily on emergency response and infrastructure repair. It included funding for immediate relief efforts such as emergency housing, essential supplies, and initial repairs to critical infrastructure like roads, bridges, and utilities. Additionally, direct financial assistance was provided to families who had lost their homes or were otherwise severely affected. Funds were also allocated for emergency health services and to facilitate temporary shelters.

The second aid package, worth €5.826 billion, targeted medium-term reconstruction and economic recovery. This included substantial grants for rebuilding residential areas, public services, and schools that were damaged during the storm. The package also offered specific support to agriculture, which had been heavily impacted. Additionally, funding was made available for local businesses to resume operations, including grants and interest-free loans to restore damaged commercial premises and restock goods. 

Also read: Valencia´s painful and slow struggle to recover from DANA

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