Brussels opens to easing budgetary discipline for Spain due to damage caused by DANA

Spain will have to face extraordinary expenses to cope with the reconstruction of the destruction that DANA left in the east of the country. In Brussels, they are aware of the complex situation and assure that they will provide financial support. Beyond the financial aid channeled through the EU Solidarity Fund, European Commission Vice-President Valdis Dombrovskis opened the door to a relaxation of budgetary discipline rules so that extraordinary costs are not not included in the deficit of the following countries. year.

“The European Commission will continue to provide all the necessary support to Spain in this difficult situation. This also concerns budgetary rules,” Dombrovskis explained at a press conference after the meeting with EU Economy Ministers, at which Carlos Corpo canceled his presence precisely to meet the needs of DANA, as the aid of 10.6 billion that the Council of Ministers approved this Tuesday.

Dombrovskis explained that the budgetary discipline rules that the EU agreed at the start of the year as it returned to stagnation after years of expansive spending to overcome the crises of the pandemic and the war in Ukraine include clauses exemption for emergency situations. The Latvian commissioner stressed that this regulation includes “provisions on important events that are beyond the control of the government”.

The flexibility therefore represents a certain relief so that Spain can spend on reconstruction without this money being counted against the public deficit which, once budgetary rules are restored, should not exceed 3%. In fact, the European Commission has spared Spain from an infringement procedure because it is expected that it will end the year right at this threshold, even if last year, which is the one taken as a reference, it exceeded this figure of six tenths.

Dombroviskis assured that the services of the European Commission are “already in contact with the Spanish authorities to discuss the possibilities and needs.” He also raised the possibility of reallocating cohesion funds or the recovery plan to deal with the reconstruction of the areas hardest hit by DANA.

The other part that the government and the European Commission are working on concerns the request for money from the EU Solidarity Fund, which is the tool available to Member States to receive financial aid in the event of natural disasters. Although Pedro Sánchez assured that the request had already been made, it was not formally formulated but rather contacts began. Spain has twelve weeks to submit the request, then the European Commission evaluates it and the disbursement depends largely on the remaining budget, which amounts to around 1.4 billion euros each year.