France and Spain Plan Economic Aid as Major Fires Still Burn

France and Spain are studying ways to pump money into regions hit by massive wildfires over the past week even before the conflagrations are fully contained.

Spanish Prime Minister Pedro Sánchez said the country’s cabinet will declare the affected areas as “emergency zones” on Tuesday, opening the door to financial aid. In France, Finance Minister Roland Lescure said on Monday that insurers would cover relocation costs for the more than 200,000 people ordered to evacuate, even if there is no damage to their homes.

“We will go all out,” French President Emmanuel Macron said late Monday as he met with firefighters and local officials in southwestern France where the fires have raged for days. “I know some people have lost everything,” he said, adding that the government will do everything it can to support the displaced people and the businesses dependent on tourism that are taking a hit during the industry’s peak season.

While the fires in both countries have yet to be contained, there were no major advances by the flames on Monday, either near Bordeaux or in the areas south and west of Madrid, according to government authorities in both countries. Officials warned that another heat wave expected this week will make the fires’ evolution unpredictable.

“I’m not being reassuring and I’m determined not to be,” Interior Minister Laurent Nunez said at a briefing after a French government cabinet meeting on Monday. “This fire isn’t contained, which means it continues.”

Characterizing the fires as “unprecedented,” Macron warned that the “season is far from over and the weeks to come will be hard.”

Still, the relative respite on Monday did allow the government to begin to plan for the next phases, and even allow some evacuees to start to head home in Spain.

The Spanish government on Monday issued a temporary ban on the use of farm harvesting machinery in the Madrid region and two neighboring provinces, aiming to prevent additional fires.

“The use of harvesters and other agricultural machinery can cause accidental ignitions due to friction, impact of metal parts, overheating of mechanical components, or any other incident inherent to their operation,” the Interior Ministry said in a statement.

The regional government of Madrid announced an initial aid package worth €30 million ($34.1 million) on Monday. The package includes free-rent for up to 12 months for people who can’t return to their homes, and funds to rebuild houses.

Asked about the more than 13,000 businesses in France affected by the fires, Macron said the government has set up a crisis-management cell to provide them support, in addition to helping them work with insurers.

Spain and France have been at the epicenter of Europe’s wildfire season, which started early this year and accelerated in recent weeks as successive heat waves baked vegetation, making it easier for flames to spread rapidly. Firefighters rushed on Monday to bring the blazes under control before another heat wave sears Western Europe starting Tuesday.

Climate change is intensifying periods of extreme heat in Europe, the fastest-warming continent. Record-breaking heat and drought have fueled the worst start ever to the global wildfire season, with climate scientists warning that a developing El Niño could bring even harsher conditions later this summer.

These are not isolated incidents, Prime Minister Sánchez said during a presentation at the Climate Refuge Network on Monday in Madrid. “It is the new normal: summers that are increasingly difficult, destructive, and, consequently, deadly.”

In Spain, around 60,000 people have been evacuated from their homes in recent days, while another 30,000 have been ordered to shelter in place, partly to keep roads clear for firefighters and soldiers. Another major Spanish fire is burning some 50 kilometers north of the coastal city of Valencia.

Sanchez said that so far in 2026, wildfires have burned approximately 150,000 hectares in Spain, and 13 people have lost their lives. In France, Nunez, the interior minister, said more than 116,000 hectares had burned across the country this season.

European Union countries have joined firefighting efforts in both Spain and France, sending planes and firefighters under the bloc’s Civil Protection Mechanism.

Temperatures are forecast to rise to around 40C (104F) in central and southern Spain by Tuesday, with amber heat alerts are in place for a number of regions. Highs in southwest France are expected to peak at 40C to 41C on Wednesday, according to national forecaster Météo-France.

Photograph: Smoke from wildfires in Villamanta, southwest of Madrid, Spain, on July 24, 2026; photo credit: Emilio P. Doiztua/Bloomberg

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