The Government approves the shock plan against inflation

After hours of tense negotiations that have lasted practically until the last minute, this morning the Council of Ministers approved the new package of measures to deal with the crisis, among which a check of 200 euros stands out for the most vulnerable families and the reduction of public transport passes between 30 and 50% from September.

NewsEditor
NewsEditor
25 June 2022 Saturday 05:02
8 Reads
The Government approves the shock plan against inflation

After hours of tense negotiations that have lasted practically until the last minute, this morning the Council of Ministers approved the new package of measures to deal with the crisis, among which a check of 200 euros stands out for the most vulnerable families and the reduction of public transport passes between 30 and 50% from September. On the other hand, the implementation of a tax for electricity companies is pending approval with the idea that it will come into force on January 1, 2023.

In the press conference after today's extraordinary council of ministers, President Pedro Sánchez highlighted that the measures benefit four million people.

One of the decisions, and of significance, is the reduction of VAT on electricity from 10 to 5%. The president of the government himself, Pedro Sánchez, anticipated it this week. He supposes to take advantage of the modification in April of a European directive that allowed the adoption of some super-reduced VAT rates. The president has assured from La Moncloa that with this reduction the taxes on electricity will have been reduced by 80%.

Another measure is the extension of the aid of 20 cents per liter of gasoline and diesel, a bonus that is maintained in a discriminated manner, without distinction of the level of income as a plant.

"With the measures approved three months ago and those of today, the Government is going to contain the rise in prices by 3.5 points," said the president at the press conference to present the measures.

The Government will reduce the subscriptions of public means of transport in the State by 50% and 30% of those of the autonomous communities and local entities as of September 1. Sánchez gave as an example that the Madrid Cercanías subscription would go from 29 euros per month to 14.

It has also been approved to raise disability retirement pensions by 15%.

Within the energy price package, the establishment of a maximum price for the butane cylinder until the end of the year stands out.

Although it does not appear in the royal decree approved today, the president announced a tax from January 1 on energy companies.

Comments

Warning!

You have to login for comment. If you are not a member? Register now.

Login Sign Up