No Agreement on State Funds for La Palma or IRPF Tax Break Extension

The Joint Commission for the Reconstruction of La Palma concludes without commitments from the central government on state contributions and tax benefits.

Sin acuerdo para los 300 millones de fondos estatales para La Palma ni prórroga del IRPF

Gobierno de Canarias · 2026-11-12

The Joint Commission for the Reconstruction of La Palma, held in the island's capital, concluded this Thursday without an agreement for the Government of Spain to transfer the 300 million euros corresponding to state contributions for 2024, 2025, and 2026 to the Government of the Canary Islands, nor a commitment to extend the 60% IRPF tax break in 2027.

The meeting, which included the president of the Canary Islands, Fernando Clavijo, ended without a favorable resolution for the Canarian administrations on two of their main demands. The Minister of Presidency of the Government of the Canary Islands, Nieves Lady Barreto, lamented the lack of response from the central Executive, calling both measures "vitally important" and recalling that they are expressly included in the State General Budget Law.
The insular president, Sergio Rodríguez, valued the willingness to dialogue but regretted that the suppression of the spending rule, requested by the Cabildo to allocate more of its own resources to reconstruction, was not addressed, which, according to him, "negatively conditions the speed of recovery."
Nieves Lady Barreto reviewed the actions carried out by the Government of the Canary Islands for the island's recovery, highlighting agricultural reconstruction. She detailed that in 2024, 16.5 million euros were allocated to compensate for the loss of income in the banana sector, and in 2025, 100 million from the surplus will be allocated to pay property owners the value of lost farms.
Furthermore, with the 100 million from the 2026 surplus, 23 million will be allocated to a specific PEPAC for the island and nine million more for ash removal. The minister pointed out that in the municipalities of the Valle de Aridane, there are over 200 applications for permits to rebuild farms that are pending the opening of agricultural tracks, emphasizing the importance of allocating resources to the recovery of tracks and roads.
Based on information from the official source: Gobierno de Canarias — Presidencia (12/11/2026)