The Spanish government has approved a €309 million emergency funding package for the autonomous city of Ceuta, responding to the ongoing migrant crisis that has stretched local resources and sparked political tensions. The measure, announced on Tuesday by the Council of Ministers, is designed to protect jobs, support businesses, bolster security, and maintain public services in the North African enclave.
Economy Minister Carlos Cuerpo described the package as a “shock response” aimed at meeting the demands of social organisations and the city government. Speaking alongside government spokesperson Elma Saiz and Territorial Policy Minister Ángel Víctor Torres, Cuerpo stressed that the primary goal is “to give confidence” to companies and workers in Ceuta. The announcement came just a day before a demonstration in the city, which has exposed divisions within the ruling PSOE and prompted Podemos to organise a separate anti-racism rally.
Breakdown of the funding
The package, which represents roughly 16% of Ceuta's GDP for the remaining four months of 2026, is divided into four main areas. Some €21 million will go to healthcare, education, justice, and water treatment. More than €90 million is earmarked for defence and national security forces, while €118 million will support humanitarian care for unaccompanied migrant minors. An additional €80 million is allocated for direct business support, trade incentives, and tax cuts.
For businesses, €36.6 million will be provided as direct aid: €5,000 per self-employed worker and between €10,000 and €150,000 per company, depending on turnover. Applications open on Monday 14 via the Tax Agency website, with first payments expected in early October. The government estimates that 2,600 self-employed workers and 1,400 companies will benefit. This is supplemented by €14 million in consumer and tourism vouchers, €1 million for the Plan Ceuta Exporta, and another €1 million to promote the city as an international tourist destination.
The package also includes permanent measures: Corporation Tax relief for companies in Ceuta and Melilla rises from 50% to 60%, provided they maintain activity and jobs. Personal income tax (IRPF) improvements for the self-employed total €12 million. Employers' Social Security contributions for permanent contracts linked to training will be subsidised from 50% to 75%, costing €12.2 million over four months. Additionally, the government will set up an ICO-backed loan guarantee scheme worth up to €50 million, introduce exemptions for companies using the ERTE job retention scheme, and provide an extraordinary benefit for self-employed workers forced to stop working.
Cuerpo noted that before the migration crisis, Ceuta was experiencing a “period of economic dynamism” that had helped correct some of the “structural deficits” the city has faced for decades. The new funding aims to build on that momentum while addressing the immediate pressures.
Ceuta's president warns of collapse
Ceuta's president, Juan Jesús Vivas, had already warned of the seriousness of the situation a month ago, when the government approved a first package of €168 million. In a new statement, published by PP leader Alberto Núñez Feijóo, Vivas denounced an “attack on its territorial integrity” and described a city “overwhelmed and on the brink of collapse.”
In a message marking Ceuta Day on 2 September, Vivas called for national unity and solidarity, thanking Spaniards for their support. “Ceuta has lived through its toughest month this August,” he wrote, describing recent events as “an unprecedented outrage” against the territory. He insisted that the city would “never” be abandoned.
Vivas acknowledged that this year's celebrations would be different, but argued that the crisis has made the day “particularly significant” and an opportunity to strengthen ties among Spaniards. He also referred to rallies scheduled for 8 pm across Spain, following a call by the Spanish Federation of Municipalities and Provinces (FEMP). These demonstrations, he stressed, are not intended to serve partisan interests and are “not marked by political colours or ideologies.” Their purpose is to send a message of unity and support to Ceuta.
Another key message in Vivas's letter is that the defence of Ceuta goes beyond the territory itself. “The cause is not exclusively Ceuta's; it is the cause of all Spain,” he said, linking the defence of the city to protecting territorial integrity and democratic values. “We have never stopped feeling you at our side,” he added, expressing gratitude for the support shown during “its most difficult moment.”
The crisis in Ceuta has also had wider European repercussions, with Italy extending border checks with Spain and the EU debating border reinforcements. The situation has also been linked to far-right disinformation campaigns, as well as broader EU migration challenges. Meanwhile, Spain's tourism sector continues to boom, with record visitor numbers reported earlier this year.
