Prime Minister Pedro Sánchez yesterday outlined the main lines of the Shock War Response Plan to be approved today by the Council of Ministers. The plan contains measures until 30 June aimed at cushioning the impact of the crisis on families and businesses. The plan is worth 16 billion euros: 6 billion euros in direct aid and tax reductions, and 10 billion in ICO credits. It has five main pillars:
Measures to help families, workers, displaced persons and humanitarian aid.
-A minimum rebate of 20 cents on each litre of fuel until 30 June for all citizens. The government will apply a reduction of 15 cents and the oil companies a minimum of 5 cents.
-Protection of employment, avoiding dismissal. In addition, companies will be able to resort to internal flexibility measures, such as ERTES.
-Rent reviews for the next three months will be capped at 2%.
-The amount of the minimum living income will increase by 15% for three months.
-Extension to 600,000 more families of the electricity social bonus, to reach 1.9 million households.
-Extension until 30 June of the tax reduction on electricity bills: the VAT rate will be reduced to 10% for small consumers, the special electricity tax to 0.5%, and the suspension of the tax on electricity generation.
Measures to support the economic and business fabric
-New line of ICO credit guarantees worth 10 billion euros.
-The maturity of loans guaranteed by the ICO and the grace period for the most affected sectors are extended.
-362 million euros aid package for the agriculture and livestock sector and a further 68 million for the fisheries sector.
For energy-intensive industry, 500 million euros to compensate tolls by 80%, to reach the maximum in CO2 compensation and to reinforce direct aid to the sector.
Transport measures
-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 lorry, 900 euros per bus, 500 euros per van and 300 euros per taxi, VTC or ambulance.
-The deadline for the refund of the tax on hydrocarbons is shortened from three months to one.
-Commitment to pass a law that allows hauliers to work with a fair price, as the government has done with farmers and livestock farmers with the Food Chain Law.
-Injection of more than 1 billion euros.
And also:
-Spain and Portugal will present to the European Commission this week an exceptional and temporary measure to set a reference price for gas used for electricity production.
-And a new National Cybersecurity Plan with more than 150 essential actions, endowed with over 1 billion euros.
