Spain eyes €300 handouts for most vulnerable and further fuel reductions

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Spain eyes €300 handouts for most vulnerable and further fuel reductions
Spain's second vice president Yolanda Diaz. Photo: Emilio NARANJO / POOL / AFP

Spain's government is considering a €300 handout for the country's most vulnerable citizens, as well as further discounts on fuel prices, as the current measures to address rising inflation aren't helping those most at risk enough.


The Spanish government is negotiating the specific measures that could form part of the new expansion of the country's plan anti-crisis.

This could include further discounts on fuel prices, which currently are €0.20 off every litre, and the possibility of introducing a €300 benefit or cheque as it's being referred to, in order to help families at risk. 


These are the two standout features of the new raft of measures proposed by Labour Minister Yolanda Díaz, of the government's far-left coalition party Unidas Podemos.

The proposal, which is currently being negotiated, aims to compensate families that have been hit by the recent rise in supermarket prices, fuel costs and the overall general cost of living.

It is designed to stop people living in Spain from falling further into debt, when benefits such as the Minimum Vital Income (IMV) are not enough to do so.

The Consumer Price Index (CPI) continues to rise in Spain and currently stands at 8.7 percent.

Díaz has also published a thread on her Twitter account in which she calls for "strengthening protection against an international crisis" and explains the measures proposed.

"To reinforce the protection of citizens, we are committed to create a €300 cheque for the people hardest hit by the crisis, as has been implemented in France. Given the rise in prices due to inflation, it is time to protect families and their purchasing power," she said. 

As well as the new fuel bonus and one-off €300 handout, the government is currently negotiating another benefit - a discount of 50 percent on public transport fares for three months. 

"To make progress in terms of ecological transition and sustainable mobility, we are committed to reducing the price of public transport. Given the increase in fuel prices, we want to reduce public transport passes by 50 percent. In addition, we propose establishing a mechanism that allows the discount to be adjusted, both for non-professional petrol and diesel, according to the income level of the beneficiaries", explained Díaz. 

These are not the only measures that PSOE and Unidas Podemos have on the table. Non-contributory pensions of 15 percent are also being reevaluated and Unidas Podemos has also proposed a tax on large electricity companies. The latter has divided the government.

Díaz has also proposed raising the corporation tax on electricity companies' earnings by 10 percent. 


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