MADRID – The spanish government has initiated its response to the widespread damage caused by recent wildfires and floods, approving initial aid measures during a Council of Ministers meeting. The declaration covers areas severely affected by emergencies since June 24, encompassing 121 incidents, with 114 wildfires and 7 floods.

Following the emergency declarations, the “Law of the National Civil Protection System” outlines recovery measures. The initial financial support is being implemented through a royal decree (RD), activating the minimum levels of assistance as currently established. Interior Minister Fernando Grande-Marlaska stated that individual ministries will determine specific allocations, with the possibility of increasing aid through subsequent decrees.

Ignacio Huertas, secretary of agriculture from UPA, told elEconomista.es that the association anticipates further increases in aid, emphasizing that many individuals have “lost everything.” He stressed the importance of coordinating government measures with support from Autonomous Communities and the European Union.

Concerns over Adequacy of Initial Support

Javier Fatás, head of the Coag environment, acknowledged the value of the aid but noted its limitations, stating that “they are insufficient,” as it omits considerations such as unemployment benefits and revitalization efforts for affected regions. Fatás highlighted the long-term impact on agriculture, noting that “In the case of agriculture, two or three years will pass until it returns to normal,” factoring in lost harvests and subsequent income losses. He also emphasized the need for European Union solidarity funds to supplement national aid.

“they are insufficient as criteria have been left out such as the unemployed profit or revitalization of the affected areas.”

The approved measures include financial compensation for individuals, covering damages to primary residences and essential needs (€15,120); aid for deaths and cases of permanent disability (€18,000); compensation for local authorities addressing urgent needs; assistance for individuals or entities providing personal or property benefits; aid for industrial, commercial, and service establishments (€9,224); subsidies for municipal infrastructure damage; aid for damage to agricultural, livestock, forestry, and aquaculture production; and preferential loan lines subsidized by the Official Credit Institute (ICO).

Additional Fiscal and Labor Measures

The existing law also enables fiscal measures, such as exemptions from the Real Estate Tax (IBI), reductions in the Tax on Economic Activities (IAE), and waivers for fees related to vehicle registration and document replacement. Personal damage aid will be exempt from income tax (IRPF).

The government will also compensate local authorities for revenue losses in local taxes through the General State Budget (PGE). The Minister of finance and the head of Public Administration can authorize reductions in net performance rates for farms and agricultural activities in affected areas.

Regarding labor matters, the Law of the National Civil Protection System stipulates that contract terminations, suspensions, or temporary work reductions directly caused by the emergency will be considered force majeure. In such cases, the General Treasury of Social Security will exempt employers from Social Security contributions.