The Commissioner for the Reconstruction of La Palma, Héctor Izquierdo, emphasized the relevance of the Royal Decree-Law ratified by the Council of Ministers, which incorporates four fundamental actions to promote the economic, social and productive recovery of the island after the volcanic eruption.

The first article of the Royal Decree-Law authorizes, exceptionally, the Autonomous Community of the Canary Islands to use 100 million euros of the budgetary surplus of 2024 —funds that, according to the Organic Law of Budgetary Stability, should be used for debt reduction— to finance direct aid to individuals and entities impacted by the eruption. According to Izquierdo, these resources are mainly intended for compensation for damages on agricultural land, increasing subsidies from 20 to 44.6 €/m², and modifying the amounts for other crops. As well as compensation for infrastructure built on land expropriated or damaged by the eruptions, such as the coastal road or the Vía de Las Norias.

Extensions of other measures of the social shield and stimulus of the island economy

The second article of the Royal Decree-Law approves the extension of the 60% deduction in the income tax of residents in La Palma for the year 2025, a measure that was already approved in 2022, 2023 and 2024. Regarding this measure, it should be noted that the increase in public investment has gone from 78 million in the first year to the estimated calculation of 111 million in the current period. This variation is explained, according to the Commissioner, by "the increase in economic activity, the increase in affiliation, the formation of companies and inflation." Although the evolution is optimistic, "this action continues to be crucial to reduce the economic burden on households," he said.

On the other hand, a new suspension is created in the repayment of the capital of loans and bank credits destined to farmers of the Aridane Valley who are registered as affected, provided that they keep agriculture as an important source in their tax declaration. The measure will run from January to June 2026 and it is estimated that approximately 195 farmers will be able to benefit.

The fourth article of the aforementioned Royal Decree focuses on the extension of the deadline to justify subsidies already transferred to the Government of the Canary Islands and the Island Council, to carry out three projects financed with the 40 million euros of the biodiversity package approved in the Royal Decree-Law 20/2021, of 5 Octoberwhich adopts urgent support measures for the repair of the damage caused by the volcanic eruptions and for the economic and social reconstruction of the island of La Palma. The stipulated deadline ended with the year 2025 and is extended until the first quarter of 2026. The projects that benefit are the Monterrey Hotel in El Paso, the Puntagorda Indigenous Livestock Research Center and the PLOCAN headquarters in Tazacorte.