Spain unveils $11 billion aid plan after catastrophic floods

A resident remove furniture in a street in Sedavi, south of Valencia, eastern Spain, on Nov. 5, 2024 following devastating flooding. (AFP)
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Updated 05 November 2024
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Spain unveils $11 billion aid plan after catastrophic floods

  • Prime Minister Pedro Sanchez announced a series of measures including aid to small and midsize businesses, self-employed workers and households
  • Tax relief and a three-month postponement to repaying mortgages and loans were also among the announcements

VALENCIA: Spain on Tuesday announced an aid package worth 10.6 billion euros ($11.5 billion) to rebuild regions devastated by its worst floods in a generation that have killed 219 people.
The exceptional Mediterranean storm that lashed eastern Spain a week ago triggered surging torrents of muddy water that have left a trail of destruction and an unknown number of missing.
Prime Minister Pedro Sanchez announced a series of measures including aid to small and midsize businesses, self-employed workers and households that have suffered deaths, incapacity and damage to homes and belongings.
Tax relief and a three-month postponement to repaying mortgages and loans were also among the announcements, which Sanchez likened to the state’s intervention during the Covid-19 pandemic to protect the economy and livelihoods.
The government would take on all emergency spending by local councils linked to clearing mud, debris and ruined property and restoring drinking water, Sanchez told a news conference.
Spain has also requested aid from the EU solidarity fund, he added.
Security forces and emergency services personnel are working around the clock to repair damaged infrastructure, distribute aid and search for bodies in Spain’s largest peacetime deployment of its armed forces.
Sanchez said almost 15,000 troops, police officers and civil guards were in the eastern Valencia region that has suffered most of the deaths and destruction, up from 7,300 on Saturday.
Firefighters combed through piles of damaged vehicles and pumped water from inundated garages and car parks where more victims may be discovered, AFP journalists saw.
Maribel Albalat, mayor of the ground-zero town of Paiporta, told public broadcaster TVE they were doing “better, but not well” with many streets still inaccessible and residents struggling to get a phone signal.
Rescuers in the southeastern town of Letur have found one of the missing bodies they were looking for, announced the central government’s representative in the Castilla-La Mancha region, Pedro Antonio Ruiz.
Two Chinese citizens, two Romanians and an Ecuadorian are among the dead, authorities in those countries have said. The floods also claimed three British victims, UK media have reported.
Many survivors are furious with the authorities for failing to warn the population on time last Tuesday and provide urgent rescue and relief work.
That anger reached a breaking point in Paiporta on Sunday when crowds heckled and hurled mud at King Felipe VI, Queen Letizia and Sanchez.
The outrage was also palpable in Valencia — Spain’s third-largest city that was unharmed despite being a stone’s throw from the hardest-hit zones — when AFP visited on Tuesday.
Local humorist Jose Antonio Lopez-Guitian, 61, had just returned from the town of Massanassa with his boots covered in mud and said residents were left to fend for themselves.
The situation was “a national disgrace” and “a dereliction of duty by all the institutions,” he said.
The floods affected more than 4,100 hectares (10,100 acres), the civil protection service said on X, using a map provided by the European Union’s Copernicus satellite.
Storms coming off the Mediterranean are common during this season. But scientists have warned that human-induced climate change is increasing the ferocity, length and frequency of extreme weather events.
“Climate change kills... we have to adapt to this reality,” Sanchez said at his news conference, lashing out at the “irresponsible discourse of deniers.”


Prabowo, Trump expected to sign Indonesia-US tariff deal in January 2026

Updated 23 December 2025
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Prabowo, Trump expected to sign Indonesia-US tariff deal in January 2026

  • Deal will mean US tariffs on Indonesian products are cut from a threatened 32 percent to 19 percent
  • Jakarta committed to scrap tariffs on more than 99 percent of US goods

JAKARTA: Indonesia expects to sign a tariff deal with the US in early 2026 after reaching an agreement on “all substantive issues,” Jakarta's chief negotiator said on Tuesday.

Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto met with US trade representative Jamieson Greer in Washington this week to finalize an Indonesia-US trade deal, following a series of discussions that took place after the two countries agreed on a framework for negotiations in July.

“All substantive issues laid out in the Agreement on Reciprocal Trade have been agreed upon by the two sides, including both the main and technical issues,” Hartarto said in an online briefing.

Officials from both countries are now working to set up a meeting between Indonesian President Prabowo Subianto and US President Donald Trump. 

It will take place after Indonesian and US technical teams meet in the second week of January for a legal scrubbing, or a final clean-up of an agreement text.

“We are expecting that the upcoming technical process will wrap up in time as scheduled, so that at the end of January 2026 President Prabowo and President Trump can sign the Agreement on Reciprocal Trade,” Hartarto said.  

Indonesian trade negotiators have been in “intensive” talks with their Washington counterparts since Trump threatened to levy a 32 percent duty on Indonesian exports. 

Under the July framework, US tariffs on Indonesian imports were lowered to 19 percent, with Jakarta committing to measures to balance trade with Washington, including removing tariffs on more than 99 percent of American imports and scrapping all non-tariff barriers facing American companies. 

Jakarta also pledged to import $15 billion worth of energy products and $4.5 billion worth of agricultural products such as soybeans, wheat and cotton, from the US. 

“Indonesia will also get tariff exemptions on top Indonesian goods, such as palm oil, coffee, cocoa,” Hartarto said. 

“This is certainly good news, especially for Indonesian industries directly impacted by the tariff policy, especially labor-intensive sectors that employ around 5 million workers.” 

In the past decade, Indonesia has consistently posted trade surpluses with the US, its second-largest export market after China. 

From January to October, data from the Indonesian trade ministry showed two-way trade valued at nearly $36.2 billion, with Jakarta posting a $14.9 billion surplus.