The shock plan that the Government will approve tomorrow and will last until June 30 will limit the rent revision to 2%, increase the amount of the minimum income by 15% and extend the electricity bonus to another 600,000 consumers, among other measures
After days of much anticipation, the President of the Government, Pedro Sánchez, detailed this Monday part of the economic measures that the Executive will approve tomorrow in the Council of Ministers to deal with the effects of the war in Ukraine on companies and families.
The shock plan that will be approved tomorrow will last “approximately until June 30” and will cost 6,000 million in direct aid and tax cuts and 10,000 million for ICO credits to cushion the impact of the crisis on families and companies.
One of the star measures of this plan, which is made up of five axes, will be to lower the price of fuel by 20 cents per liter for all drivers. This was advanced by Sánchez, who specified that the State will assume 15 cents and the remaining 5 will be in charge of the oil companies. The discount will be made directly when refueling at the gas station.
The main measures of the anti-war plan are detailed below.
Measures to help families, workers, displaced persons and humanitarian aid
•Minimum bonus of 20 cents on each liter of fuel until June 30 for all citizens. The Government will apply a reduction of 15 cents and the oil companies, a minimum of 5.
•Protection of employment, avoiding dismissal. In addition, companies will be able to resort to internal flexibility measures, such as ERTES.
•Rental revisions for the next three months will be capped at 2%.
•The amount of the minimum vital income will increase by 15% for three months.
•Extension to 600,000 more families of the electricity social bond, reaching 1.9 million households.
•Extension until June 30 of the tax reduction on the electricity bill: from the VAT rate to 10% for small consumers, the special tax on Electricity at 0.5%, as well as the suspension of the tax on Electricity generation.
Measures to support the economic and business fabric
•New line of ICO credit guarantees for 10,000 million euros to cover liquidity needs caused by the temporary increase in the cost of energy and fuel.
•The maturity period of the loans guaranteed by the ICO and the grace period for the most affected sectors are extended.
•Aid package of 362 million euros for the agriculture and livestock sector, and another of about 68 million, for fishing.
•For the large energy-consuming industry, 500 million euros to offset tolls by 80%, reach the maximum in CO2 compensation and reinforce direct aid to the sector.
•There will be other aid and additional specific measures for the industrial sector, the export sector and the culture sector.
•Injection of more than 1,000 million euros.
•The transport sector will benefit from the minimum reduction of 20 euro cents per liter or kilo of fuel.
•New fund of 450 million euros for direct aid to freight and passenger transport companies, depending on the type of vehicle: 1,250 euros per truck, 900 per bus, 500 per van and 300 per taxi, VTC or ambulance.
•The term for refunding the tax on Hydrocarbons is shortened from three to one month.
• Commitment to pass a law that allows carriers to work with a fair price, as the Government has done with farmers and ranchers with the Food Chain Law.
4. Cybersecurity measures
•New National Cybersecurity Plan with more than 150 essential actions, endowed with 1,020 million euros.
• A Cybersecurity Operations Center will be set up for the General State Administration and its public bodies.
•Strengthening the security of the new 5G electronic communications networks.
Measures regarding energy, to lower the final price of electricity for households and companies
•Spain and Portugal will present an exceptional and temporary measure to the European Commission this week, setting a reference price for gas used for electricity production.
•Updating of the specific remuneration regime for the production of electricity from renewable energy sources, cogeneration and waste, which entails a reduction in 2022 of electricity system charges up to 55%, for 1,800 million euros.
•The mechanism to reduce excess profits in the electricity market caused by the high price of natural gas on international markets is extended until June 30, with certain modifications to strengthen its effectiveness and adapt it to European guidelines.
•Other regulatory measures will be approved to promote and accelerate the deployment of renewable energy, energy savings and guarantee energy supply.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.