Spain approves $8 billion aid package for storm-hit regions as floods damage homes and crops

Summary

• Spain approved about $8 billion in aid for storm-affected regions
• More than 12,400 evacuees will receive compensation
• Around 14,000 hectares of crops were damaged
• Rainfall has been significantly above average, worsening flooding
• Portugal is also facing billions in reconstruction costs

Spain has approved roughly €7 billion ($8 billion) in emergency aid for regions hit by severe storms, as authorities step up recovery efforts following widespread flooding that damaged homes, infrastructure, and crops.

The package targets communities in Extremadura and Andalusia, where heavy rainfall forced evacuations, disrupted local economies, and caused extensive agricultural losses.

Relief to support evacuees and local economies

Budget Minister María Jesús Montero said the funding would compensate more than 12,400 people who were forced to evacuate due to flooding.

The assistance is designed to help rebuild homes, restore small businesses, and support rural livelihoods. Officials indicated that additional funding could be announced once full damage assessments are completed.

Agriculture hit hard by extreme weather

Agriculture Minister Luis Planas said at least 14,000 hectares of farmland — including berries, citrus fruits, and olive groves — were affected by the storms.

The losses highlight the vulnerability of southern Spain’s agricultural sector to increasingly volatile weather patterns, which can disrupt harvests and regional supply chains.

Above-average rainfall intensified the damage

Spain’s State Meteorological Agency (AEMET) reported that rainfall since October has been about 38% above the historical average, leaving soils saturated and increasing flood risks.

The storms are part of a broader pattern of extreme weather affecting the Iberian Peninsula.

Regional context: Portugal also facing reconstruction costs

Neighboring Portugal is dealing with similar challenges. Authorities there estimate more than €4 billion in reconstruction costs and have rolled out about €2.5 billion in loans and incentives following recent storm damage.

Why this matters

The aid package underscores the growing fiscal burden on European governments as climate-related disasters become more frequent.

Repeated large-scale relief spending is increasingly shaping budget priorities across southern Europe, highlighting the need for stronger resilience planning alongside recovery efforts.

FAQs

Q1: Which regions are receiving aid?

Extremadura and Andalusia, which were heavily affected by recent storms and flooding.

Q2:How much aid has been approved?

About €7 billion, equivalent to roughly $8 billion.

Q3: Who will benefit from the package?

Evacuated residents, homeowners, businesses, farmers, and fishing communities.

Q4:Could more funding be announced?

Yes — officials said additional aid may be provided after damage assessments.

Q5: Why were the storms so damaging?

Above-average rainfall and repeated storm systems increased flood risks and infrastructure strain.