Valencia Asks for €31 Billion Rescue Package After Deadly Floods
(Bloomberg) - The region of Valencia is asking Spain's central government for rescue funds to help with rebuilding after floods last week destroyed homes and left more than 200 dead.
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The Valencian government agreed to ask Madrid for €31.4 billion ($34.2 billion), regional President Carlos Mazon said on Monday evening. The package will include aid for reconstruction of homes and the purchase of vehicles, he said.
Valencia is still dealing with the aftermath of floods that killed more than 200 people, with hundreds more still missing. Streets are covered with mud and more than 100,000 cars were hit by the floods, according to initial estimates. The storm has been one of Spain's worst natural disasters in living memory.
The regional government hasn't updated the death toll since Nov. 1. The latest figure provided by the national government was 217, which includes three people killed in neighboring regions.
Rescue work is ongoing and the central government, led by Socialist Prime Minister Pedro Sanchez, has said it's still too early to determine the damage. On Saturday, Sanchez announced Spain's biggest peacetime deployment of military and security forces to the flood-hit region.
The central government on Tuesday is expected to announce a financial relief package that will include income tax moratoriums for flood victims. The natural disaster insurance agency is also processing requests for compensation from victims, although it hasn't released any figures.
The insurance agency handles natural disasters so that insurers aren't left footing the bill. The cost of insured losses are expected to be "well above" €1 billion, according to initial estimates by Morningstar.
The regional administration in Valencia is led by a center-right party that's the biggest group Sanchez faces in the national parliament. Amid the disaster and anger about the authorities' response, there's been bickering between the central and regional governments, with conflicting accounts over how alerts and rescue efforts have been managed.
Valencia's regional government has so far pledged €250 million of aid. Meanwhile, Spanish billionaire Amancio Ortega's foundation on Monday announced a €100 million donation for flood victims.419739102
On Monday, the neighboring region of Catalonia was hit with storms that flooded streets and suspended train services. The most intense rains ended in the evening, according to that region's government.
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