Spain Seeks Emergency Funds from EU as Drought, Heatwave Hit Agricultural Sector
Date
4/26/2023 3:12:27 AM
(MENAFN) Spain has requested emergency funds from the European Union (EU) to help its agricultural sector cope with the ongoing drought. Agriculture Minister Luis Planas wrote a letter to the EU’s agricultural commissioner, asking for the activation of the common agricultural policy’s (CAP’s) crisis reserve. The drought in Spain is “much more accentuated” than in other countries, according to Planas. The country is bracing for potentially record-breaking heat this week, with temperatures expected to approach 40 degrees Celsius (104 F) in Andalusia by Thursday. The heatwave, combined with abnormally dry conditions, is exacerbating the drought that has been affecting Spain for over a year.
The drought and heatwave are having a severe impact on Spain’s agricultural sector, which accounts for around 3 percent of the country’s GDP. The Bank of Spain Governor, Pablo Hernández de Cos, has warned that climate change will be a “fundamental determinant” of economic growth and financial stability. He added that Spain could be more affected than other countries in certain dimensions due to a warming planet.
In addition to seeking emergency funds, the Spanish government has decreed tax breaks for farmers to help them deal with failing crops. Those working with the hardest-hit crops, such as olives, almonds, and beekeeping, will see their income taxes cut in half. Farmers working with grains, oil crops, legumes, chestnuts, peaches, nectarines, and livestock will receive a 30 percent reduction. The cost of the measure is estimated at €1.8 billion (USD1.99 billion).
The Spanish government’s measures are aimed at supporting farmers who are facing significant losses due to the drought and heatwave. The situation highlights the vulnerability of the agricultural sector to climate change and the urgent need for adaptation measures. The EU’s CAP crisis reserve is designed to provide financial assistance to farmers in times of crisis, such as severe weather events or disease outbreaks. Spain’s request for emergency funds underscores the severity of the situation and the need for collective action to address the impacts of climate change on agriculture.
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