• Last minute: everything about the advance of the coronavirus in Spain

The Government has decided to press the accelerator of the rescue to citizens and companies . Today's Council of Ministers, also telematics, has approved an extensive package of measures aimed at mitigating "significant loss of income for households, self-employed persons and companies".

In these exceptional circumstances, the Executive has decided to focus its economic policy "on protecting employment, helping the most vulnerable and maintaining the productive fabric . " In his eyes "the impact that the current emergency situation ends up having will depend, to a large extent, on the mobilization of national and community resources and on coordination between budgetary, monetary, financial and structural policies."

Specifically, in the new royal decree-law approved today, the Government contemplates three lines of action. Firstly, a new package of social measures aimed at supporting vulnerable workers, consumers, families and groups , another to reinforce economic activity , as well as actions aimed at supporting companies and the self-employed. And a third block with measures to adjust the operation of the Administration to current needs , undertaking measures regarding the annual accounts of public sector entities, in terms of liquid availability and donations, as well as in the financing granted by territorial entities. .

AVAILABILITY OF PENSION PLANS

In addition to the measures that THE WORLD already advanced yesterday, such as the moratorium of up to six months in the payment of quotas to the Social Security of SMEs and the self-employed and the entire package of aid to the rental sector, with a plan of State guarantees for the most vulnerable tenants, in addition to suspending launches due to non-payment, the government has today approved measures to provide liquidity to households, for example allowing the provision of pension plans in the event of unemployment or business closure.

"During the six-month period", and as of March 14, "the participants in the pension plans may, exceptionally, make their consolidated rights effective," the decree states. In three cases, due to being affected now by an ERTE, due to business cessation, or the self-employed who "had previously been integrated into a Social Security regime as such and have ceased their activity as a consequence of the health crisis situation" .

MORTGAGE DEPOSIT

In the real estate field, in addition to the rental aid package, the Government has also decided to extend the moratorium already granted to mortgages to three months . According to the draft to which this newspaper has had access, "the suspension period is extended to 3 months and technical adjustments are made to facilitate the application of the moratorium on mortgage debt for the acquisition of habitual residence introduced by Royal Decree-Law 8 / 2020, March 17 ".

Suspended fees should not be settled once the suspension has ended, but all future payments must be postponed for the duration of the suspension.

NO SUPPLY CUTS

In addition to extending the mortgage moratorium, the Executive extends the same period of cadence to all those loans linked to consumption for those households that have been impacted by the coronavirus crisis.

The term of the suspension is added to the payment of the mortgages and will be three months, limited to those families that have seen their income decrease drastically in recent weeks due to the application of an ERTE or the cessation of activity of a company. . The bank will not be able to collect in this period neither the installment nor the interests of the credits.

On the other hand, the royal decree establishes that while the alarm state is in force, it cannot suspend the supply of electricity, gas and water to any home considered "habitual residence" except for reasons linked to security of supply.

RENTAL PACKAGE

The royal decree-law establishes, among other measures, the suspension of launches for vulnerable households without housing alternatives and the extraordinary extension of the leases of habitual residence. Likewise, measures are established that are conducive to seeking a moratorium on tenancy debt for tenants of habitual residence in a situation of economic vulnerability. In this sense, a new Rental Aid program is also incorporated into Royal Decree 106/2018, of March 9: the "Aid Program to help minimize the economic and social impact of COVID-19 on rents for habitual residence "

FREE THE SURVIVAL OF CITY HALLS

Likewise, the amount of the surplus that Local Entities may allocate to benefits and investments related to social spending, with the consideration of financially sustainable investments, as established in article 3 of Royal Decree-Law 8/2020, of March 17, which has set the amount for the whole of the aforementioned subsector to be 300 million euros. The application of this norm and the follow-up that will correspond to the Ministry of Finance requires that the entities provide the necessary information.

In addition, given the current situation, due to its exceptional nature and the urgency to execute the expenses that are necessary to meet the needs that arise in relation to the application of that provision, the Presidents of local corporations are empowered so that, By Decree, they can approve credit modifications consisting of extraordinary credits or credit supplements.

Third, with the aim of ensuring that citizens are not excluded from the financial system by not being able to temporarily meet their financial obligations as a consequence of the health crisis of COVID-19, in parallel with mortgage financing of housing, this Royal Decree-Law extends the scope of the moratorium to credits and non-mortgage loans that keep people in a situation of economic vulnerability, including consumer loans.

THE PERCEIVERS OF THE SOCIAL BONUS ARE EXTENDED

In fifth place, the group of potential recipients of the social electricity bonus is expanded, which individuals, in their habitual residence, with the right to contract the Voluntary Price for Small Consumers, may receive exceptionally and temporarily, which they have an income equal to or lower than certain thresholds referenced to the IPREM, and that they prove to the reference marketer that they are affected by employment regulation measures adopted by their companies, have ceased their professional activity as self-employed professionals or have seen their reduced turnover in 75 percent on average compared to the previous semester.

The measures of confinement and restriction of mobility entail the uninterrupted stay in the home of the majority of the members of the household. Additionally, many professional activities that, in habitual circumstances are carried out outside the home, have been transferred to the home. For this reason, energy supplies (electricity, natural gas, petroleum products) and water supply acquire, if possible, an even more essential nature.

HOUSEHOLD EMPLOYEES

Seventh, a response is given to the group of domestic workers, especially vulnerable in the current circumstances, given that they do not have the right to unemployment benefit. For this reason, a temporary extraordinary subsidy is created from which they will be able to benefit in the absence of activity, the reduction in hours worked or the termination of the contract as a consequence of COVID-19. The amount of the subsidy will depend on the remuneration received previously, as well as the reduction in activity suffered, requiring the employer to provide proof of said reduction to the employer. This subsidy is compatible with the maintenance of other activities and the maximum amount to be received will be the SMI without extraordinary payments.

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  • Social Security
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