Here are all the measures of the government: from fuel shortage to a temporary increase in minimum critical income

admin March 29, 2022 19 Views
Updated 2022/03/29 at 2:20 PM
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Here are all the measures of the government: from fuel shortage to a temporary increase in minimum critical income
Here are all the measures of the government: from fuel shortage to a temporary increase in minimum critical income Listen to this article

The government this Tuesday approved a long-awaited package to respond to the energy crisis caused by the war in Ukraine with up to 16,000 million (6,000 million in direct aid and tax rebates, and 10,000 million in ICO credits) in aid. The countdown until the presentation of the plan – President Pedro Sánchez announced two weeks ago that there would be a millionaire shock plan – has been marked by social protests, notably the carrier’s strike, which has decimated the executive. However, the coalition government is trying to change the situation with what was achieved at the last European summit and the measures agreed upon.

Among aides, a bonus of 20 cents per liter of fuel for all citizens, whether individuals or professionals. However, the anti-crisis package includes a 2% increase in fare revision limits, an increase in the amount of minimum critical income, a prohibition of dismissals alleging a rise in energy prices during the coming months, and a reduction in electricity taxes. , among others. This is a list of measures that the government has approved after weeks of intense talks within the executive with the opposition, social agents and community partners.

lack of fuel

Between April 1 and June 30, motorists, whether private or professional, will have a minimum bonus of 20 cents per liter of fuel. Of this amount, 15 cents and the rest 5 cents will be borne by the oil companies by the government. There is talk of minimum exemptions because some companies have increased the amount of subsidies, for example Repsol, Sepsa and BP.

employment security

The work objective fixes the dismissal prohibition, as it did during the coronavirus crisis, although this time it is limited to companies that receive some sort of direct assistance in planning a shock in response to the war. With this measure, for example, companies will not be able to justify dismissal because of an increase in the electricity bill. They will be able to use Temporary Employment Regulation Files (ERTE) as internal flexibilities to reduce the impact of war. Yolanda Diaz, the second vice president and labor minister, defended after the council of ministers, “If we later allow those companies to be fired, there will be no point in allocating public resources that pay salaries and social contributions.”

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rent review limit

The executive has, after intense negotiations within the coalition government, included a 2% hike in fares limits between April 1 and June 30, although the period could be extended if the crisis persists. In addition, leases are differentiated between large and small owners. However, this will have no practical consequences for the tenants.

Temporary increase in minimum critical income

The amount of minimum critical income will increase by 15% over the next three months. In 2022, according to the updated table of the Ministry of Social Security, income ranges from 491.63 euros per month to 1,081.59 euros, depending on the type of cohabitation unit. Thus, the amount of aid will depend on the amount that corresponds to each beneficiary: it will be between EUR 73.74 and EUR 162.24 additional aid per month between April and June.

Electricity social bonus and reduction in electricity tax

All help is focused in one way or another to minimize the consequences of the energy surge. However there are two more specific ones on the electricity bill: the extension of the electricity social bonus to 600,000 more households – this would reach 1.9 million households. This income limit has been increased by 0.5 times from IPREM to be the beneficiary of the bonus so that more consumers who contract at regulated rate can benefit from this exemption on electricity bill.

Along with this, the government has given the green signal to extend the deduction of tax on electricity bill till June 30. Thus, this quarter, VAT for small consumers will remain at 10%, tax on electricity will remain at 0.5% and the suspension of tax on electricity generation will continue.

ICO Moratorium of Credit and New Line of Guarantee

The economy has boosted the extension of maturities of loans guaranteed by official credit institutions (ICOs), as well as grace periods for the sectors most affected by the crisis triggered by the war in Ukraine. In addition, there will be a new line of guarantee of 10,000 million euros. “The aim is to respond to the liquidity needs of many companies and the self-employed due to rising energy prices,” Nadia Calvino, First Vice President and Minister of Economic Affairs, said at a post-Council of Ministers news conference. These new credits can be given till December 31 this year and will have a tenure of 12 months.

Support by Sectors

The anti-crisis package includes assistance by sectors. On the one hand, a public injection of 362 million euros is collected for the agriculture and livestock sector. The fishing area corresponds to 68 million. And for the industry which is a major consumer of energy, 500 million are devoted to offsetting the toll by 80%, reaching the maximum allowed in CO₂ compensation and reinforcing direct aid to the sector. In addition, the government details that there will be other additional measures for the industrial, export and cultural sectors.

measures for carriers

The carrier, which has sparked protests in recent weeks that have barred the executive, will benefit from an injection of 1,050 million. This includes 600 million, which is estimated to cost the state a reduction in fuel, from which they will cover a rebate of 15 cents per litre. Another 450 million will be channeled through a new fund for direct assistance to freight and passenger transport companies, the amount of which varies depending on the type of vehicle: 1,250 euros per truck, 900 euros per bus, 500 euros per van. and 300 Euro per taxi, VTC or ambulance.

Further, the period for refund of tax on hydrocarbons has been reduced from three months to just one month. And the government is committed to ratifying a law that guarantees carriers work at a fair price, without damage to service, as already agreed in agreement with the majority of employers in the sector. It is intended to be similar to what has already been done with the food chain law with farmers and livestock owners.

National Cyber ​​Security Plan

With this package, the executive promotes a new national cyber security plan, worth more than EUR 1,000 million, which includes about 150 essential actions. For this, a Cyber ​​Security Steering Center will be set up for the general state administration and its public bodies. And the security of the new 5G communication network will be further strengthened.

action on the energy market

After last week’s European summit, in which the Iberian exception was recognized, Spain and Portugal will have to submit an extraordinary and temporary measure to the European Commission to set a reference price for gas used for electricity generation . It will be Brussels that will have to give the green light to the amendment and it is estimated that the entire process will be done in a period of between three and four weeks.

The Shock Plan includes updating of specific remuneration arrangements for renewable energy sources, co-generation and generation of electrical energy from waste. With this, according to the government’s calculations, a reduction of up to 55% in electricity system charges will be achieved in 2022 for about 1,800 million euros. In addition, the mechanism to reduce excess profits in the electricity market due to high natural gas price in international markets has been extended till June 30. “In signing or updating new electricity contracts, quantitative limits must be set,” Teresa Ribera, third vice president and minister for ecological transition, explained at the Council of Ministers’ post-press conference. That is, it will mark the limit that cannot be exceeded. In addition, other regulatory measures have been approved to promote and accelerate renewable energy, energy savings and supply guarantees.

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