Commission approves €1.5 billion Spanish State aid scheme to support farmers affected by 2025-2026 floods in Andalusia and Extremadura

This article is brought to you in association with the European Commission.

The European Commission has approved, under EU State aid rules, a €1.5 billion Spanish scheme to support farmers affected by a series of adverse meteorological events in the regions of Andalusia and Extremadura between 10 November 2025 and 9 February 2026.

The Spanish scheme

Spain notified the Commission of its plans to compensate farmers for the damage caused by severe floods that affected an area of over 100,000 km² (over 20% of Spanish territory) in Andalusia and Extremadura, resulting in the destruction of crops, material damage to assets and means of production, and higher operating costs.

The scheme aims to prevent farm closures and preserve agricultural production. It will provide beneficiaries with rapid financial support to restore production capacity of affected farms.  The aid will take the form of direct grants covering up to 100% of eligible costs, which include material damage and loss of income resulting from the total or partial destruction of agricultural produce or agricultural production assets.

The scheme will run until 31 December 2026.

The Commission’s assessment

The Commission assessed the scheme under EU State aid rules, in particular Article 107(2)(b) of the Treaty on the Functioning of the EU (‘TFEU’), which allows for State aid to make good the damage caused by natural disasters within the agricultural sector, and under the 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas (‘2022 Agricultural Guidelines’).

According to the Guidelines, floods may constitute natural disasters. In the context of this scheme, the Spanish authorities have formally recognised the event as a natural disaster and demonstrated a direct causal link between the floods and the damage suffered by the farmers. On this basis, the Commission approved the Spanish scheme under EU State aid rules.

Background

The 2022 Agricultural Guidelines provide guidance on how the Commission assesses the compatibility of State aid measures in the sector. The Guidelines set out the conditions under which a measure constituting aid to make good the damage caused by natural disasters is compatible with the internal market under Article 107(2)(b) TFEU.

For more information

The non-confidential version of the decision will be made available under the case number SA.122821 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.