The Spanish Government presented the eighth Royal Decree-Law against the Crisis and took stock of the year 2023. Among the new economic measures it has adopted is the extension of the reduction in VAT on basic food until June. VAT will remain reduced from 4% to 0% in staple foods (milk, bread, eggs, legumes or vegetables) and from 10% to 5% in oils and pastes.

In energy terms, VAT on electricity will increase from 5% to 10%. In 2021, the government fell to 5%. Keep 10% throughout 2024. Gas VAT will increase from 5% to 10% in the first quarter and 21% thereafter.

Regular public transport users, local areas, Rodalies and Renfe Media Distancia are free of charge, as well as public transport services of state competence. It is different in transport depending on regional and local administrations. In these cases, the State will maintain a 30% subsidy, provided that the regional governments make a 20% discount. Thus, the transport price in general will be reduced by 50%.

PNV agreements

The PNV has agreed two things with the Government of Spain. On the one hand, the conclusion of the tax on energy companies and banks, and on the other, the extension of the contract for the transfer of workers.

As regards the first, the extraordinary burdens imposed on banks and energy companies will be integrated into the tax system by agreement or contract. Thus, they will be managed by the CAPV and Navarra. The tax on extraordinary profits from energy companies and banks will therefore be maintained. However, they will be alleviated by an incentive for “strategic investments”, i.e. investing in “ecological transition”.

With regard to the other agreement reached, they agree to extend the contract for the relief of the worker for one year. According to the PSOE, Sumar and the PNV that have reached an agreement, the decision will be rejuvenated in the industry and will facilitate training in the sector in which they are undergoing major changes.

EH Bildu agrees to suspend evictions of vulnerable people

According to the agreement reached with the Government of Spain, the deadline for banning evictions of vulnerable persons is extended. It will be maintained throughout 2024. This measure, led by the housing area in the anti-crisis plan, comes from the shock plan that was launched in 2020 to limit the impact of the pandemic. Vulnerable people must meet a number of conditions in order not to dislodge.