This measure is part of the package of actions taken to alleviate Valencia’s financial situation in the wake of the natural disaster.
The Spanish Government, through the Government Delegate Commission for Economic Affairs (CDGAE), has agreed to allocate 700 million euros from the 2024 Autonomous Community Financing Fund to the Valencian Community to cover the extraordinary expenses incurred by the Generalitat to respond to the emergency resulting from the DANA registered between 28 October and 4 November of this year.
This agreement is approved in accordance with the Tenth Additional Provision of Royal Decree-Law 7/2024, of 11 November, which adopts urgent measures to promote the Plan for an immediate response, reconstruction and relaunching in the face of the damage caused by the Isolated High-Level Depression (DANA) in different municipalities between 28 October and 4 November 2024.
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The Government will allocate 700 million to the Generalitat Valenciana to meet the extraordinary expenses of the DANA
Already in the previous Delegated Commission, it was pointed out that funds could be allocated in CDGAE agreements to finance the extraordinary expenses executed in response to the emergency situation derived from the DANA registered at the end of October.
Thus, thanks to this agreement, the Generalitat Valenciana will be allocated 700 million euros from Tranche III, through the Autonomous Community Liquidity Fund (FLA), of the Autonomous Community Financing Fund, to cover the financing needs of the 2024 deficit corresponding to the extraordinary expenses incurred by the Valencian Community to deal with the DANA. In this way, the allocation of Tranche III of the Autonomous Community Liquidity Fund for the Valencian Community will be increased by the aforementioned amount.
These funds may be released directly in favour of the Autonomous Community, exclusively to cover the aforementioned extraordinary expenses.
Thus, in response to the request submitted by the Autonomous Community of Valencia, this agreement allocates funds to the Autonomous Community of Valencia to finance the extraordinary expenses incurred during 2024 in response to the emergency resulting from the DANA.
A fixed interest rate of 0% per annum will be applied to the drawdowns of funds from the FLA sub-fund of the 2024 Regional Government Financing Fund under this agreement.
Measures to mitigate the effects of the DANA
Between 28 October and 4 November 2024, a high-intensity DANA caused significant flooding that has caused serious personal and material damage, with the most affected autonomous community being the Valencian Community. Faced with this situation, the Government has adopted a series of measures aimed at mitigating the damage caused, attending to the needs of the affected population and restoring the damaged infrastructures, goods and services to their condition.
The approval of this agreement is in addition to the measures implemented by the Government to alleviate the effects of this unprecedented natural catastrophe.
The government has approved three royal decrees with very powerful measures that mobilise 16.6 billion euros and which also provide for direct aid that the victims will not have to pay back and that they will receive quickly and without red tape and bureaucracy.
In addition, support measures have been put in place for other administrations, such as local councils, as the first administrations to attend to those affected by the DANA.