La Palma Post-Eruption Recovery Efforts

Overview

Following the devastating volcanic eruption on La Palma in late 2021, the Spanish government continues its long-term recovery efforts. A new order, published on May 20, 2025, clarifies the process for distributing emergency subsidies aimed at small businesses and self-employed individuals still unable to operate due to gas emissions and safety restrictions.

The eruption’s impact persists in areas like Puerto Naos and La Bombilla, where toxic gases remain at levels that hinder reopening efforts.

Recognizing that many local entrepreneurs face severe income losses, the government allocates an additional €3 million to aid businesses affected through direct subsidies, with a maximum payout of €45,000 per recipient.

Eligibility and Distribution

• Companies must be registered in the affected zone.
• Must have been operational as of September 2021.
• Demonstrate that their activity was entirely interrupted by toxic gases through official zone designations.

The aid will cover losses for the second, third, and fourth quarters of 2024, supporting the recovery of La Palma’s fragile local economy.

Key Features of the Regulation

• Emphasizes quick, transparent, and efficient aid distribution.
• Leverages electronic processes and established legal frameworks to streamline emergency support.
• Includes provisions to prevent abuse:
  • Companies are required to declare other aid received.
  • Companies must commit to proper documentation and accountability.

Ongoing Impact

This initiative highlights the ongoing government response to a natural disaster that continues to cast a long shadow over La Palma’s residents and businesses, with infrastructure rebuilding still underway nearly two years after the eruption.