Spain requests EU aid for DANA damage in Valencia, assessing losses at €4.4 billion

by Else BeekmanElse Beekman
EU DANA aid for Valencia

Spain’s government has officially requested financial assistance from the European Union following the catastrophic DANA storm of October 2024. This comes just in time, with the deadline for applications approaching.

On January 20, 2025, Spain’s Ministry of Finance submitted its formal request for European aid to assist with the recovery from the devastating DANA (Isolated Depression at High Levels) storm that struck the country in late October. This request, which is crucial for Spain to access the EU’s Solidarity Fund, was sent just one day before the deadline for applications. The Spanish government estimates the damage caused by the storm at a staggering €4.4 billion.

Last minute fomalisation

The request marks a significant moment, as Spain had been preparing to seek EU aid since the storm’s aftermath. However, it was only after a series of miscommunications with the European Commission that Spain’s request was finally formalised. Initially, the Commission had denied certain statements regarding the timing and specifics of Spain’s application, which delayed the process.

A long-standing procedure for EU aid

Spain first indicated its intention to apply for EU disaster aid on November 4, 2024. Then, Minister of Finance María Jesús Montero informed then-Commissioner for Cohesion and Reforms, Elisa Ferreira, of the government’s plan to request assistance from the Solidarity Fund. According to EU regulations, countries can apply for aid if the damage exceeds 0.6% of their Gross National Income or €3 million, adjusted for inflation using 2011 prices. The Spanish government’s submitted documentation confirms that the damage caused by the DANA storm meets these criteria.

What is covered by the Solidarity Fund?

The Solidarity Fund is designed to cover a portion—though not all—of the costs associated with natural disasters. Eligible expenses include the restoration of essential infrastructure such as;

  • energy, water, healthcare, and education facilities
  • temporary housing
  • urgent service costs
  • infrastructure security
  • cultural heritage protection
  • emergency clean-up operations

According to Spain’s submission, the total cost of these measures reaches €4.4 billion.

What happens next?

Despite the significant figure put forward by Spain, the country is not expected to receive the full €4.4 billion. Some of the expenses outlined in the application may be eligible for funding through other EU recovery mechanisms. For example, the Recovery, Transformation, and Resilience Plan. However, EU regulations clearly stipulate that double funding for the same measures is prohibited.

Now, the European Commission will review Spain’s application and assess the amount of aid it will approve. This process is likely to take several months, and the final sum allocated to Spain could be capped at €1.5 billion—the maximum allowed under the current regulations.

The extent of the storm’s damage

The full scale of the damage from the October 2024 DANA storm becomes clearer. Experts from the Valencian Institute of Economic Research (IVIE) have estimated that losses exceed a staggering €17 billion. This represents at least 20% of the total assets, both private and public, located in the flood-affected area (including homes, businesses, industries, agricultural goods, machinery, equipment, and all types of infrastructure), with an estimated total value of around €85.9 billion, which accounts for 35% of the overall value of assets across the entire province of Valencia. 

Despite the mobilisation of around €11 billion in non-repayable government funds, the IVIE insists that this amount is insufficient for a swift reconstruction. According to their report, an additional €6 billion in direct government aid is needed to restore the region’s infrastructure and economy to pre-disaster levels. Without this extra support, they warn, the recovery process could become protracted. Especially considering the social and economic dimensions of the area, which houses over a million residents.

Also read: 100,000 vehicles still await removal in DANA-hit Valencia

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