New stimulus package announced in Spain for 10.6 billion
2022.12.27 10:34
New stimulus package announced in Spain for 10.6 billion
Budrigannews.com – In the third major package this year, Spain announced measures worth 10 billion euros ($10.65 billion) to alleviate inflationary pressures. This brings the total amount of assistance since the beginning of 2022 to 45 billion euros.
The impact of the war in Ukraine on energy prices has made the cost of living crisis Spain, like other European nations, even worse.
Prime Minister Pedro Sanchez told reporters that the package includes a one-time bonus of 200 euros for about 4.2 million households with annual incomes up to 27,000 euros and an extension of tax cuts for energy bills into the first half of next year.
The announcements of the package, which included direct aid, tax cuts, soft loans, rental controls, and similar announcements in June and March, are similar.
The measures and an agreement to limit gas prices for electricity production that was negotiated with the European Union have had some success. In November, inflation slowed to 6.7%, the lowest rate among the 27 countries that make up the EU.
A sharp drop in electricity prices in November, which decreased by 22.4% from a year earlier, has helped to slow inflation. However, food costs have continued to squeeze Spaniards’ pockets, rising 15% from a year ago in October and November.
According to the government, the value added tax on essential foods like bread, cheese, milk, fruit, vegetables, and cereals will be reduced from 4% to 0%. According to Sanchez, the VAT on cooking oils and pasta will be reduced by half to 5%.
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Additionally, Sanchez announced limits on rental increases and 12-month extensions of subsidies for commuter train travel. Except for the haulage industry, consumers will no longer be eligible for a rebate on the price of gasoline.
He stated that the assistance provided thus far had contributed to Spain’s strong economic growth this year, which he estimated at over 5%, exceeding the previous government forecast of 4%.
