The Government is still studying the anti-inflation measures that it will extend this Wednesday

2023-12-26 15:13:19

The Government plans to approve this Wednesday the decree law that will extend some of the measures to cushion the rise in prices caused by the invasion of Ukraine, including the reduction of VAT on some foods for six more months, although work is still being done on others.

EH Bildu has announced that with them The ban on evictions of vulnerable people has been agreed until 2025the prohibition of cuts to basic supplies of electricity, water and gas, and the extension of the TUR4 regulated rate for community boilers.

From Sumar they also take for granted the extension of other measures such as the extension of the discounts corresponding to the electric social bonus or the prohibition of layoffs due to the energy crisis for companies that have received direct aid.

Sources from the Ministry of Economy have recalled that along with the elimination of VAT for basic foodstuffs and the 5% reduction for oils and pasta, free public transport for young people and the unemployed will also be approved, as announced by the president of the Government, Pedro Sánchez.

Sánchez also advanced the maintenance of subsidies for urban transport and free commuter and medium-distance trains, measures that were included in the 2023 budgets last year.

Among what has already been committed is also the new threshold so that some 100,000 families with incomes of up to 37,800 euros per year can opt for the mortgage relief measuresfrom which only around 7,000 households have benefited so far.

Likewise, the suspension of all early repayment commissions for mortgage loans from variable to fixed rates will be maintained in 2024 and conversions from variable to mixed rates will also be included.

Negotiation underway within the Government

The coalition government is still negotiating the extension of other measures of the so-called “social shield”such as the reduction of taxes that support the electricity and gas bill, or the Freezing the price of butane cylinders.

Sumar sources have stressed that the negotiations are intense and that issues such as the tax on banks and energy companies are sparking debate within the coalition government.

The Government agreement between PSOE and Sumar includes the maintenance of both taxes, after the two years initially planned, although in recent weeks the socialist side has hinted that there is room to soften themsince the circumstances that led to its approval have been mitigated.