Spain Approves New Anti-Crisis Package Worth 9.1 Billion Euros
Spain News
Published: 27 June 2022 17:39 CET
Updated: 07 March 2023 17:39 CET
The Spanish government approved a new anti-crisis package on Saturday, June 25. A package that is aimed at helping the most vulnerable who are struggling with the rising cost of living.
The new package, which is worth 9.1 billion euros, will also target the big energy companies who have this year, profited from huge windfalls due to the soaring price of gas.
When the new plan was unveiled, Prime Minister Pedro Sánchez announced that those employed, self-employed or unemployed, with gross incomes that are lower than 14,000 euros per annum, will receive ‘direct aid of 200 euros.’
Sánchez also announced that a new tax on energy companies will come into effect in 2023,
“The burdens of this painful situation must be distributed fairly. Those who obtain indirect benefits from this rise in prices must make an additional contribution to the collective effort and to the protection of the middle and working classes,” he said.
The prime minister emphasised that these new measures would help protect approximately four million citizens, however as a whole, the plan will benefit all Spaniards.
The new Decree will see the reduction in gasoline by 20 per cent, an increase of 15 per cent for the Minimum Vital Income and the freezing of the rise in rents at 2%, all extended until the end of this year.
A 50 per cent reduction on public transport passes will also be included, as will a 30 per cent reduction for transport passes that are issued by individual regions. This reduction can be increased to 50 per cent with the regions using their own resources.
If an annual subscription has already been bought, the BOE leaves it up to the autonomous communities to decide if a refund of monies should be given. According to the rules "The corresponding administration may decide whether to enable a system to allow the return to the user of the proportional part that corresponds to 30% of four months, without this return procedure being mandatory.”
Only last week, the Spanish government announced the reduction of VAT on electricity bills from 10% to 5% and a 15% increase in non-contributory retirement and disability public pensions. This meant a monthly reduction of 60 or 360 euros by the end of the year.
From July, vulnerable families will be able to request a cheque for 200 euros.
The VAT reduction on electricity has been delayed until July. This will be a single payment of 200 euros and will be available for those who earn less than 14,000 euros a year and have assets of less than 43,196.40 euros in 2021.
Of the total 9.1 billion euro package, 5.5 billion will be by direct expenditure and 3.6 billion a reduction in income.
Sources
https://www.euractiv.com/section/energy-environment/news/spain-approves-anti-crisis-package-targeting-energy-companies/
https://cadenaser.com/nacional/2022/06/27/la-letra-pequena-y-el-calendario-de-las-medidas-anticrisis-del-gobierno-cadena-ser/
Image Credit: Pool Moncloa / Fernando Calvo
