Balearic Government Pays €4.85 Million in Industrial Aid to Offset Economic Impact of Middle East War

08 de November de 2026

The Balearic Government has paid almost €4.85 million in financial assistance to self-employed workers and small and medium-sized industrial businesses affected by rising production and transport costs linked to the war in the Middle East.

The payments form part of two extraordinary support schemes launched in June 2026, with a combined initial budget of €10 million. According to the Regional Ministry of Enterprise, Self-Employment and Energy, the administration has now processed 90% of the aid, paying all applications submitted without deficiencies.

The latest figures were published on 7 November 2026, with further payments expected in the coming weeks.

More Than €4.4 Million to Cover Fuel and Raw Material Costs

The largest share of the assistance has gone towards compensating industrial businesses for increased production costs.

The Government has already paid €4,425,121 through the scheme covering higher fuel and raw-material prices.

This support is intended to help businesses absorb additional operating expenses rather than pass the full increase on to customers through higher selling prices.

Eligible fuel costs include petrol, diesel, natural gas, liquefied petroleum gas, liquefied natural gas, biofuels, hydrogen, AdBlue, renewable petrol and diesel, and methanol.

The raw-material support covers materials incorporated into a company's own production process. Businesses applying under this category were required to meet specific financial conditions, including having procurement costs exceeding 40% of their total operating costs in 2025.

Additional Support for Export Transport Costs

A second funding line helps industrial businesses cover the additional cost of transporting goods exported from the Balearic Islands.

The Government has already paid €425,825 under this scheme.

The assistance is intended to compensate for transport costs directly connected to the company's business activity and attributable to workplaces located in the Balearic Islands.

Both schemes were designed to help local industrial businesses manage the additional expenses associated with the international economic crisis.

A Further €348,600 in Payments Expected

The Regional Government expects to distribute another €348,600 in the coming weeks to applicants whose payments are still pending.

The outstanding amount is divided between the two schemes:

  • €256,000 for increased fuel and raw-material costs.

  • €92,600 for export transport expenses.

Once these payments have been completed, the combined amount distributed through the two programmes is expected to reach €5,199,546.

Of this total, €4,681,121 will correspond to the production-cost assistance scheme and €518,425 to the export transport programme.

The Government says the payments already made cover all applications submitted without deficiencies. The remaining payments are therefore not evidence that all applications have been fully settled.

Ibiza Businesses Could Receive Up to €22,500

The original support programme was designed specifically for self-employed workers and small and medium-sized enterprises operating in the Balearic industrial sector.

The maximum grant amounts varied according to the island where each business had its registered headquarters:

  • Mallorca: up to €20,000.

  • Menorca: up to €22,500.

  • Ibiza: up to €22,500.

  • Formentera: up to €25,000.

The maximum for the fuel and raw-material scheme applied to the combined eligible costs under those two categories.

Businesses could apply for one or both programmes, although the same expense could not be claimed under both. Each eligible beneficiary could submit only one application.

Original €10 Million Support Package

The two extraordinary funding lines were announced by the Balearic Government on 1 June 2026, with an initial combined allocation of €10 million.

The larger programme received €8 million to help compensate for increased fuel and raw-material costs, while €2 million was allocated to support the additional transport expenses associated with exporting goods.

Applications were accepted between 15 and 30 June 2026. Grants were to be awarded according to the order in which complete and correctly submitted applications were received, subject to the available budget.

The initiative forms part of the regional administration's response to the economic consequences of the conflict in the Middle East, with the stated objective of helping industrial businesses maintain their activity and limit the impact of higher operating costs.

With almost €4.85 million already paid and a further €348,600 expected to follow, the Government anticipates that total payments under the two schemes will reach approximately €5.2 million.

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