Published December 27,2022
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The left-wing Spanish government has adopted a new programme to mitigate the economic consequences of the war in Ukraine to the tune of €10 billion ($10.6 billion).
Prime Minister Pedro Sánchez presented the measures for the upcoming year - an election year - in Madrid on Tuesday. The package scraps some previously introduced measures and introduces new ones.
The aim is to ensure that the aid reaches those who really need it, Sánchez said.
The subsidy of 20 cents per litre for petrol and diesel will be abolished as of January, with a few exceptions for haulage companies, agriculture and fishermen. The measure, which was introduced on April 1, 2022, had been criticized because it also benefited higher income earners who did not really need the help.
Particularly targeted at needy families is the waiver of VAT on basic foodstuffs and the reduction to 5% for vegetable oil and noodles during the first six months of 2023.
In addition, pensions are to increase by 8.5% and particularly low pensions by 15%. Some 4.2 million families with an annual income below €27,000 are to receive a one-off payment of €200, a so-called "food cheque."
In order to relieve tenants, rents for existing contracts are frozen for half a year. Free rail travel in local and regional transport will be extended until the end of 2023.
