The key to the $ 16,000 million shock plan against the aftermath of the war

The Prime Minister unveiled a package of measures as part of a shock plan against the consequences of the war this Monday, totaling 16,000 million euros by June 30th.

Sanchez recalled that Spain “started strong growth” before the war, with growth of 5.1% in 2021, an economy that was about to “restore GDP to a pandemic”, and hiring rates were incomparably higher. “We are not going to wage war on the right to reduce this positive evolution.

The shock plan for mitigating the effects of war has five main axes: measures to support families, workers, and refugees; Economic fabric support measures; In terms of transportation; Cyber ​​protection; In terms of energy, lowering the final price of electricity for homes and businesses.

These are the measurements:

Fuel discount

Until June 30, each liter of fuel has a minimum bonus of 20 Euros for all citizens. 15 cents will be contributed by the government and oil companies, “at least” another five cents. Sanchez wanted to “thank” some of these companies by announcing discounts for “assignments” announced last week (Repsol, Cepsa and BP did it).

The reduction in electricity is in anticipation of the price of gas

This week, Spain and Portugal plan to submit a joint proposal to the European Commission on a “particularly” reduction in gas prices and a “significant reduction” in final electricity prices “immediately” after approval. From Brussels. In addition, a reduction of up to 55% on the invoice (regulated part established by the government) will be approved by the renewal of the Renewable Energy, Cogeneration and Waste Premium Remuneration Mode (Mode known as RECORE), which. Will allow for the pre-withdrawal of € 1,800 million which companies had to return to as of January due to high prices in the wholesale market.

In addition, the government intends to increase the number of beneficiaries of the Social Electricity Bonus to 600,000 households with “almost 2 million” households, Sanchez said. The electricity tax was extended until June: a reduction of VAT to 10% and a suspension of the tax on electricity generation. The mechanism for reducing excess profits in the electricity market has also been extended until June 30, “with some changes to enhance its efficiency and adapt to European guidelines.” Finally, Sanchez took “other regulatory measures” to “facilitate and accelerate the use of renewable energy, save energy and guarantee energy supply.”

Direct assistance to carriers per vehicle

The government last week reached an agreement with the majority of carriers’ association to reduce fuel prices, where they will be the main beneficiaries. The government estimates that support for this sector will exceed € 1,000 million. In addition to fuel cuts, $ 450 million is included for direct assistance to freight and passenger transport companies. It will be € 1250 per truck, € 900 per bus, € 500 for vans and € 300 for taxis, VTCs or ambulances.

In addition, it will be permissible for professionals to reduce the tax refund period for hydrocarbons from three months to one month and include the obligation to approve a new law that allows carriers to work in a “fair price” style. On the law of the food chain.

Another 10,000 million ICO guarantees and assistance for rural and fisheries

The Prime Minister gave a little more form to the announcement made last week by Vice President Nadia Calvino about the expansion of the ICO loan program. In particular, the government intends to expand the line of guarantees for companies by another 10,000 million euros, in addition to the guarantees already issued in response to the pandemic. Sanchez argued that the measure was aimed at addressing the liquidity problems of companies that have suffered the most from rising fuel prices and electricity bills due to the conflict in Eastern Europe. This program will last until June

The event also includes the extension of repayment and grace periods for loans that are still alive in response to COVID-19. However, to know the details of the new calendar, we have to wait for the Council of Ministers on Tuesday. There are currently around 380,000 companies, the shortage of which will end in the coming weeks and months, following a consistent extension.

In response to the pandemic, the ICO mobilized 92,700 million public guarantees for companies, adding another 11,000 million focused on “investment and operations”.

In addition to assistance with business credit guarantees, the government has introduced a series of support for the primary sector and rural Spain. This part includes 362 million direct assistance to the agriculture and livestock sector and another 68 million to the fisheries sector.

Finally, he assured that new measures will be taken this Tuesday to help the industrial sector, exports and culture.

Industry support

For the large energy industry, € 500 million is available to compensate for 80% of the electricity tax, “to reach the maximum in CO2 compensation and to strengthen direct assistance to the sector”.

2% limit on rental price adjustment related to CPI

The government has finally included the deindexation of the CPI upgrade price in the Ukraine war response plan. In three months, the rent that will be renewed and which should increase according to the general index will increase by only 2%.

This measure will prevent the renewal of leases from April to June at the worst time, according to inflation peaks, which will even exceed the 7.6% increase in CPI in February, almost to the maximum compared to the same month last year. Four decades.

In this way, the average rent in Spain, which is around 700 euros, will increase by only 2% in the coming months and not 53.2 euros, which will increase according to the February CPI.

Just a week ago, at a recent meeting with the executive’s social agents to discuss the response plan, trade unions warned that “they need to talk about housing.” “I do not even want to think about the blow that tenants are receiving as they have to renew their CPI-related rents,” said Unai Sordo, CCOO’s secretary general.

Restriction of dismissal for the promotion of ERTE

The president of the executive branch confirmed that measures would be taken to “prevent dismissal” and that companies facing difficulties due to the war would apply to ERTE, which is based on labor reform. According to consulted government sources, the launch of a specific networking mechanism for the war at this time does not provide for new cyclical and sectoral labor reform files, but it is likely that ERTE is due to force majeure and ERTE (ETOP) is the “right way” for affected companies.

In case of dismissal, the state aid for companies will be conditioned by the fact that they do not dismiss both direct and social contributions received from ERTE, the same sources explain. Companies that use ERTEs because of the war will also avoid layoffs, they added.

“There is a mechanism to protect companies and workers, they are ERTE and there is no need for dismissal,” said Vice President and Minister Yolanda Dias, following the president’s statement.

IMV is up 15% by June

Another group that is more protected by the war will be “the most vulnerable,” the president confirmed. To that end, Sanchez announced a 15% increase in the subsistence minimum wage (IMV) over the next three months, from April to June.

1000 million for cyber security

Sanchez has announced the approval of a new national cybersecurity plan with more than 150 substantial actions, which has been rewarded with more than € 1,000 million. A Cyber ​​Security Operations Center will be established for the General State Administration and its public bodies. And enhance the security of new 5G electronic communications networks.

tion provided by Antonio M. Veles, Diego Laroui, Laura Olias and Daniel Yebra.