Inflation is at an all-time high due to the Russian invasion of Ukraine. President Pedro Sanchez has opened the door for a possible extension to the Royal Decree-Law to urgently respond to the serious consequences that this conflict continues to have on Spanish families, businesses and individuals. At the conclusion of the European summit in Brussels on Monday and Tuesday, the Spanish president stated that “Obviously we are open for extending it beyond Juni 30.”
The decree-law contains measures like the 0.20 euro per liter reduction in fuel cost and the prohibition against dismissals due to rising energy costs for direct aid recipients. It includes a limit on the annual rental update, a 15% increase of the minimum vital income, and an automatic renewal of electricity social bond. This benefits 1.9million households.
Sanchez stated that “first with the pandemic, then with the war,” referring to the government’s “social shield” during the crisis. President Sanchez explained that the rule to reduce the war’s effects includes tax rebates on electricity prices and specific aid for primary, transport, and fishing sectors. The validity of these rules is “reviewed every three months.”
The Government monitors the development of the conflict in Ukraine as well as its economic and socio-economic impact on Spain. Based on the observations, it will decide whether to extend the measure. The Spanish Executive will announce its final decision “before June 30,” the expiration date of the current decree-law.
