decreto canarias la palma recovery approved

Decreto Canarias approved: La Palma recovery boost

Compiled with the help of artificial intelligence, based on Spanish-language information. Source below the article.

The Spanish Council of Ministers has given its backing at Tuesday’s meeting to the launch of the so-called Decreto Canarias, a document which, among other matters, aims to complete the recovery of La Palma five years on from the eruption of the Tajogaite volcano. This was confirmed at a press conference by the Minister for Territorial Policy and Democratic Memory, Ángel Víctor Torres, who appeared before the media following the meeting to explain the details of the agreement. The former president of the Canary Islands also stated that the measures will take effect “immediately” once published in the Official State Gazette on Wednesday.

Two historic demands now secured

The approval of this legislative package secures two historic economic demands made by the people of La Palma since September 2021, when the island suffered the severe economic consequences of the volcanic eruption. In this regard, the Decreto Canarias confirms two measures aimed at this recovery:

60% income tax (IRPF) relief: The legislation ratifies the extension of this measure providing direct tax relief to all residents of La Palma. Torres recalled that this measure forms part of the so-called Agenda Canaria and “will be seen immediately in pay packets”.

€100 million for reconstruction: The current transfer has been unlocked to continue infrastructure works, boost economic reactivation and improve living conditions for those affected by the volcanic crisis. “Funding from the 2025 financing excesses can be allocated to the primary sector on a preferential basis, to compensate for the consequences on land as well as the construction of agricultural infrastructure,” explained Torres, who noted that should greater investment be required, it will not count towards compliance with the spending rule.

Moratorium and support for the self-employed

The decree also introduces a moratorium for farmers in the affected municipalities of El Paso, Los Llanos de Aridane and Tazacorte who had applied for loans, with the measure being re-approved because “there are still some people” affected.

For self-employed workers, the cessation-of-activity benefit will no longer take into account POSEI subsidies when calculating net income, which will be based on figures from 2019.

€600 million surplus unlocked for the Islands

Furthermore, the Council of Ministers has also addressed another historic demand of the Canary Islands, allowing the regional government access to €600 million from the Archipelago’s budgetary surplus. This is the amount corresponding to the Canary Islands under a measure planned for the whole of Spain which, according to the Finance Minister, Arcadi España, must be used to “finance sustainable investments in its territory throughout 2027”.

The deputy minister for the Presidency of the Canary Islands Government, Alfonso Cabello, had already indicated that these funds could be allocated to areas considered priorities by the regional executive, namely health, education and essential public services.

A scaled-back package

This block of urgent measures for the Islands is far removed from the text originally drawn up by the Canary Islands Government, which contained 50 actions across 35 articles and 12 additional provisions. The regional executive and the Spanish state have opted to unlock the various demands through different instruments, meaning that some measures from the original document have already been approved through other channels, while others remain pending negotiation.

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