The Government approves its plan despite criticism from the Bank of Spain: "The reduction in fuel benefits the middle classes"

The Government ignores the recommendations of the Bank of Spain and defends its response plan against the economic impact of the war in Ukraine.

The economic body has defended this morning selective aid in the face of the crisis and focused on vulnerable consumers, something that collides with the Executive's star measure to discount the price of fuel by 20 cents per liter for all drivers, regardless of their income level.

The Vice President of Economic Affairs

, has used theoretical and technical arguments to justify that there are no limits on the application of the measure.

In the first, she has alluded to the fact that the reduction "benefits the middle classes and the road transport sectors for both merchandise and passengers."

In addition, she has indicated that the objective is to achieve a significant and rapid impact that will help mitigate the CPI data in the coming months.

And in relation to the technical problems, Calviño has focused on the driver's difficulty in proving his income level when refueling.

"We cannot ask the gas station that their clients show them the payroll or the income statement", he has pointed out.

In addition to this measure, the shock plan includes, in energy matters, the extension in the tax reduction of the taxes levied on the electricity bill, the prohibition that the regulated gas bill rise more than 5% in the second quarter of the year and the extension of the electricity social voucher for vulnerable groups.

These protection measures will be accompanied by the modification of the remuneration regime for renewable energies, whose income is linked to the market price and is then liquidated to adjust to the reasonable return of 7.4% stipulated by law. The new measure is forthcoming that liquidation to save 1,800 million euros with which to finance the reduction of the position.

The Shock Plan also includes the deployment of an "extraordinary mobilization of public resources", as Calviño has described it, of

, of which

and

from the Official Credit Institute (

) to loans granted by banking entities.

The guarantees will be linked to credits that can be granted until December 31, 2022 and will have a grace period of one year.

The Government has also decided

the ICO loans that were granted in the worst moments of the pandemic and that were to expire this March, after having been extended for another year in March 2021. This means that companies that have received this type of credit

and will not start having to repay the principal until October 2022.

As this medium reported, this also implies that public guarantees could not begin to be executed until 2023.

dismissal for economic reasons has also been approved

, which in practice means that dismissals for economic reasons are considered

, but it will not be applied indiscriminately to all companies as initially the second vice president,

had proposed, but it

The Government, for the moment,

, if it will be those that are granted from now on or if all companies that have received a subsidy or guaranteed loan since the pandemic broke out in 2020 will now be unable to dismiss properly.

"

(...)", said Díaz, who explained that "since the companies are going to receive public aid, if they do They will have to return them."

Companies that benefit from a Temporary Employment Regulation File (

) may not resort to dismissal either.

This means that a company that has not requested any help and is now going through a complex situation due to rising prices and costs and wants to resort to dismissal, will be able to do so.

Although the unions had asked the Government to approve the

for companies that are experiencing difficulties due to inflation, the Executive has only announced that it will allow its use

.

The rest of the companies will be able to go to the traditional ones for economic, technical, organizational and productive reasons (

), which do not entail the exemption of Social Security fees and must be negotiated with the social agents.

An

has also been approved , which to date served to complete a minimum level of income from 461.5 euros per month for an adult only to 1,015 euros for families made up of four adults and one child.

Now up to 530.7 euros will be supplemented in the case of a single adult household, up to 1,167.2 euros in the most numerous.

of 362 million will

also be deployed for

, 68 million for the

, 500 million for electricity consumers, 125 million for companies that have intensive gas consumption, and 450 million for transport of goods and passengers.

In addition, the deferral of the payment of contributions to Social Security will be allowed.

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