This Monday, the Ministry of Finance sent the necessary documentation to benefit from the European Union Solidarity Fund “as a result of the damage caused by DANA on October 29, which mainly affected the province of Valencia.” This fund is “the Union’s main instrument to support recovery from natural disasters and is an expression of solidarity between Member States,” recalls the Ministry.
On November 4, a few days after the floods, the first vice president of the Government and Minister of Finance, María Jesús Montero, already informed the then European Commissioner for Cohesion and Reforms, Elisa Ferreira, that Spain intended to benefit from the Fund. of Solidarity.
The fund’s regulation establishes that Member States may join it, considering the catastrophe to be of a serious nature, when the damage resulting from the catastrophe exceeds 0.6% of the gross national income or 3,000 million euros (2011 prices). “The documentation sent by the Ministry of Finance reflects that Spain meets this condition,” defends the Ministry of Finance.
The fund finances part of certain expenses derived from catastrophes such as DANA. The expenses eligible to receive resources from the European fund are, among others, those destined for “reestablishment of basic infrastructure, such as energy, water, health and education.” Also those that have to do with “temporary accommodation and costs of emergency services to cover immediate needs.” Additionally, for “security of prevention infrastructures.” And finally, for “cultural heritage protection measures” and for “cleaning operations”.
“The documentation sent this Monday includes the details of the expenses that meet the requirements to be financed with the Solidarity Fund and that currently amount to 4,404 million euros,” according to the Treasury. This figure could vary downwards in the event that some of the eligible expenses receive financing from the Recovery, Transformation and Resilience Plan. “The regulation establishes that double financing of measures is not permitted and the beneficiary State must ensure that the costs covered by the Solidarity Fund are not already covered by other Union financing instruments.”
Once all the information has been sent, a process begins in which the European Commission will analyze and evaluate the documentation and finally assign the amount of aid that corresponds to Spain. The subsidy must subsequently be approved by the Council and Parliament of the European Union. Once the credits are available, the Commission signs an agreement with the beneficiary State and provides the subsidy. This entire process is relatively long and can take several months.
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