Spanish Government Announces Urgent Measures to Support Areas Affected by Recent Storms

Introduction

The President of the Spanish Government, Pedro Sánchez, has unveiled a comprehensive package of urgent measures to assist households, businesses, self-employed individuals, and local institutions in 75 municipalities in the Valencia region, two in Castilla-La Mancha, and one in Andalusia that have been devastated by recent storms. The government’s response plan aims to address the immediate needs of the most affected areas and kickstart the recovery process in three distinct phases.

Immediate Response Phase

In the first phase of the plan, the government will declare the affected areas as disaster zones and enact a royal decree-law authorizing the immediate deployment of necessary measures. The estimated cost of this initial package is around €10.6 billion, with nearly half allocated to guarantees managed by the Official Credit Institute (ICO) and €1.438 billion designated for fiscal measures.

Reconstruction and Rehabilitation

The second phase will focus on reconstructing the most severely impacted areas, prioritizing the restoration of homes and essential infrastructure. The government aims to provide direct assistance to individuals and businesses to facilitate the recovery process.

Transformation and Adaptation

The third phase will concentrate on transforming and adapting the affected regions to the challenges posed by the changing climate, particularly in the Mediterranean coastal areas.

Main Economic Measures

Vivienda

– Individuals with mortgages or consumer loans can defer full payments for three months and only pay interest for the following nine months.
– Households with damaged properties can receive direct aid ranging from €20,000 to €60,000, depending on the extent of the damage.
– Families can request up to €10,320 to replace lost appliances and repair damaged furniture.
– Residents of the same building can apply for up to €36,896 to repair common areas.
– The Insurance Compensation Consortium will begin compensating families and businesses for vehicle losses, providing 20% above the vehicles’ appraised value.

Empresa

– €838 million will be allocated to support small and medium-sized enterprises (SMEs) and self-employed individuals in the affected areas.
– A new €5 billion credit line will be established to offer financial support to both businesses and households.
– Affected companies that temporarily suspend operations will be exempt from paying Social Security contributions until at least February 2025.
– The government will defer the second installment of income tax payments for affected taxpayers in Valencia for three months.

Trabajo y Seguridad Social

– A new temporary disability benefit will be introduced to provide financial assistance to workers physically or psychologically impacted by the storms.
– A cessation of activity benefit will cover 70% of self-employed individuals’ contribution base.
– Social benefits, such as the minimum income guarantee, will be increased by 15% for the next three months.

Justicia

– Mechanisms will be established to help citizens locate and certify lost property documents.
– Free location notes for real estate assets will be provided by registrars, and notaries will offer advice and facilitate document retrieval.
– Telecommuting options will be implemented in courts, notaries, and other administrative offices.
– Additional judicial resources will be deployed to expedite legal processes and support affected individuals.

Conclusion

The Spanish government’s swift and comprehensive response to the recent storms demonstrates a commitment to supporting the affected communities and facilitating their recovery. By providing a range of financial aid, tax relief, and other assistance measures, the government aims to help individuals and businesses rebuild and adapt to the challenges ahead.

FAQ

– How will the government fund the €10.6 billion aid package? The government plans to utilize a combination of guarantees managed by the Official Credit Institute (ICO) and fiscal measures to finance the assistance program.
– What is the timeline for implementing these measures? The government aims to start disbursing aid and implementing relief measures as soon as possible, with specific details to be provided by the crisis committee and through an informational website for easy access to assistance programs.

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