Simon Hunter
SPAIN’S leftist government is poised to extend some cost-of-living measures well into 2024, rather than letting them expire on December 31 as had previously been expected.
Government sources have briefed the Spanish press that elements of a ‘social safety net’ that was first implemented in the wake of Russia’s invasion of Ukraine back in 2022 will be kept in place, in a bid to help citizens cope with the resultant cost-of-living crisis and high inflation.
The Spanish government, which is run by a coalition of the Socialist Party and leftist alliance Sumar, is reportedly still negotiating the exact measures that will stay in place, but their decisions are due to be approved tomorrow at a Cabinet meeting.
The package of assistance that is up for discussion includes a cut in taxes on energy, deep discounts for regular users of public transport, a sales-tax reduction on essential groceries, and a freeze on home evictions.
According to Spanish daily El Pais, the measures are being negotiated by the central government’s deputy prime ministers María Jesús Montero, Teresa Ribera, Nadia Calviño and Yolanda Díaz, with Prime Minister Pedro Sanchez to make the final decisions on what to keep and what to cut.
Some of the measures are not deemed by the government to be necessary any more, such as a government discount on diesel for the transport and farming sectors, given that the price at the pumps has now fallen considerably since the spike caused by the Ukraine war.
The cuts that will be made are also aimed at lowering the fiscal burden for the Spanish state. According to El Pais, the measures cost the public purse some €22 billion in 2022, and then a further €15 billion in 2023.
New European Union fiscal rules will come into force in 2024 that will oblige member states to reduce the gap between government spending and income.
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