Spain announces measures against the economic crisis

MADRID (HPD) — Spain announced a series of measures Tuesday, including the removal of a tax on foods such as bread and milk, and the extension of controls on rents and evictions, to ease the economic crisis caused by Russia’s war. in Ukraine.

Prime Minister Pedro Sánchez announced the measures in a speech to mark the end of the year. The government will also reduce the VAT on cooking oil and pasta, from 10% to 5%. Fish and meat products were excluded from the VAT reduction.

Sánchez pointed out that the three economic assistance packages approved since the start of Russia’s war in Ukraine in February will cost the country some 45 billion euros ($48 billion), including 10 billion for the most recent round of measures.

He said that the objective is “to protect the middle class, workers and workers against the increase in the cost of living, energy and food.”

Although inflation and fuel prices have subsided in Spain in recent months, many Spaniards continue to suffer from a crisis that began with the COVID-19 pandemic and worsened with the war in Ukraine.

The government will maintain a reduction in the tax on electricity, from 10% to 5%, for another six months and will hand out checks for 200 euros for those who earn less than 27,000 euros a year. The checks will go to some 4.2 million homes, Sánchez said.

In addition, the suspension of accommodation for poor people was extended, a measure that has been in force since the COVID-19 pandemic. Sánchez added that those who are about to renew their leases in the next six months will be able to ask for another six months without a rent increase.

In addition, the government will maintain free travel on commuter trains for frequent users for all of 2023 and added medium-distance urban buses to the package. Gasoline discounts for truckers will also continue.

The measures will take effect on January 1.

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