A BATTERY of measures to soften the blow of price-led inflation has been announced following Spain's latest Council of Ministers, at a cost of around €9.1 billion.
President Pedro Sánchez explains that €5.5bn will be in direct spending, and €3.6bn in 'reduction in State income' through 'tax reductions'.
Spain's president Pedro Sánchez speaks to reporters after the most recent Council of Ministers
As well as the already-announced cut in value-added tax (IVA) on electricity bills to 5% - the second this year, after it was previously reduced from 21% to 10% - the government's 20-cent discount at the pump per litre of petrol will continue until the end of the year, when it will be reviewed.
Many national service station chains have added an additional discount of up to five cents per litre – although fuel is still far more expensive than it has ever been, even with the rebates, these have proven very welcome now that prices have comfortably broken the €2 per litre barrier for the first time in history.
Also, before the end of the year, all employees, self-employed persons and the unemployed will get a one-off cash benefit of €200 if their before-tax earnings are less than €14,000 per annum.
They can apply for this from the start of July.
Public transport season tickets, including monthly, weekly or annual travel passes, will be discounted, Sánchez has announced.
Where transport is State-owned, such as the national rail board, RENFE, these season tickets will be reduced in price by 50%.
For trains, trams, buses, and underground rail or metro services, where they are owned, run or both by local councils or regional governments, travel passes will be discounted by up to 30%.
This will not be immediate, though – the move is set to come into effect on September 1, and continue until at least the last day of the year, when it may be renewed if the need still exists.
Sánchez says his cabinet fully intends to apply a windfall tax to energy companies, which will be spent on helping reduce bills for the end consumer.
Ministers are working on a law reform to allow for it, and expect it to come into effect from the start of the year 2023.
