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State debt to La Palma victims nears €300 million

The Canary Islands Government has processed €100 million of pending aid for more than a thousand victims of the 2021 Tajogaite eruption. Almost half of that amount is already in the accounts of La Palma’s farmers. The regional executive reminded that the Spanish State has not honoured its commitment and warned that the debt will reach €300 million in January.

€100 Million Executed, €200 Million Still Owed

The regional government declared the €100 million derived from the autonomous surplus as fully executed for La Palma’s economic recovery after the volcanic eruption. It reiterated its claim against the State for the remaining €200 million, corresponding to the 2024 and 2025 instalments.

These aids were established as compensation for those affected by the Tajogaite eruption in 2021. Their implementation was announced by Canary Islands President Fernando Clavijo after a meeting on Monday with representatives of Asepalma, during which the payment plan managed by the Ministry of the Presidency was evaluated.

“They have packed their bags and abandoned the reconstruction of La Palma, but we will not give up that money.”
“If it had arrived when it was supposed to, the farms would already have been rebuilt and back in production.”
— Nieves Lady Barreto, Minister of the Presidency

“Despite the difficulties, they have kept their confidence and believed in this Canary Islands Government.”
“In this fifth Christmas after the volcano, people now know they will be able to continue with their lives.”
— Fernando Clavijo, President of the Canary Islands

Progress in the Last Month

  • 1,136 applications processed in 29 days, covering all banana plantations, agricultural buildings, ponds, and tropical‑crop dossiers.
  • The first payment order was issued in early December; the latest was released this Monday.

Minister Barreto reported that €43.5 million has already been deposited into beneficiaries’ accounts and that payments will continue throughout January. The next phase will address second‑home assistance, to be funded with an additional €50 million planned for 2026.

“If the State does not transfer the committed funds, the debt will reach €300 million in January.”
— Nieves Lady Barreto

She added that these resources are earmarked in the State General Budget Law, and their absence has delayed the reconstruction of agricultural holdings.

Reactions from Asepalma

Representatives of the affected sector thanked the government for completing the process, noting that the release of payments ends four years of uncertainty. However, they highlighted that some dossiers remain pending due to ownership disputes or missing documentation.