MADRID, 16 Jul. (EUROPA PRESS) -
The Permanent Deputation of the Congress will validate the latest aid decree to alleviate the effects of the war in Ukraine and its economic consequences after the general elections on July 23.
As reported by parliamentary sources to Europa Press, the Permanent Deputation is not expected to meet next week, so the validation of the decree will have to wait for the week after the elections or the following week at the latest.
And it is that the norm, in force since its approval in the Official State Gazette (BOE) on June 28, has to be validated within 30 business days of its promulgation.
As a consequence of the dissolution of the Cortes Generales due to the electoral advance, the Permanent Deputation, the only body that remains standing, is the one that assumes the power to validate or repeal the measures approved by the Government via decree law.
The main objective of the decree is to extend some of the measures to deal with the economic consequences of the war in Ukraine and the rise in prices that expire on June 30, such as VAT reductions on food and transport aid public.
In total, this package of measures mobilizes an additional 3,800 million euros, although the total impact --taking into account the total aid, with tax cuts and bonuses-- is 8,900 million euros in the second part of the year.
The new approved package maintains the suppression for six more months of the 4% VAT that is applied to all basic foods, including bread or milk, and the reduction from 10% to 5% of oil and pasta. In addition, among other aids that are being extended, there is also a reduction in the price of passes and multi-trip tickets for public transport (the Renfe suburban and medium-distance discount had already been extended throughout the year).
Thus, the public transport of the rest of the administrations will continue to be subsidized with 30% as long as the autonomous communities commit to increasing this discount to at least 50%.
The Royal Decree-Law also extends some labor measures linked to public aid. In this way, the increase in energy costs may not constitute an objective cause for dismissal until December 31, 2023. Failure to comply with this obligation will entail the reimbursement of the aid received.
Of course, companies that take advantage of the measures to reduce working hours or suspend contracts for reasons related to the invasion of Ukraine and that benefit from public support will not be able to use these causes to make layoffs.
Diesel aid for professional transporters, farmers and ranchers is also extended. Until September 30, the bonus will be 10 cents per month, while in the last quarter of the year it will be 5 cents per litre.
In terms of energy, the decree provides a modification of the price references of the electricity and fuel markets introduced in the formulas that define the remuneration parameters of the cogeneration, biomass and waste plants, thus improving the remuneration for these technologies.
Additionally, the support measures for the island of La Palma are extended. Specifically, the regime of suspension of the obligations to pay interest and principal of the mortgages of those affected by the volcanic eruption registered in the Cumbre Vieja area is extended for another 6 months.
The Temporary Employment Regulation Files (ERTE) linked to the situation of temporary force majeure in the case of affected companies and workers from the Canary Islands are also extended until December 31, 2023.
As a consequence of the dissolution of the Cortes Generales due to the electoral advance, the Permanent Deputation, the only body that remains standing, will be the one that assumes the power to validate or repeal the measures that the Government has approved this Tuesday by decree law.
However, the decree also eliminates some of the measures established in previous anti-crisis packages. This is the case of the possibility of automatically extending the rent for six months with the same conditions as the contract that was in force up to that moment.
This does not affect the limitation of the annual update of the rent of housing lease contracts, regulated in the Housing Law, which prevents increases of more than 2% until December 31, 2023 and 3% until the end of 2024.
In terms of housing, the decree maintains until the end of the year the suspension of the eviction procedure and the releases for vulnerable households when there is no housing alternative. The period during which landlords and homeowners affected by the extraordinary suspension of eviction or release can submit the compensation request is also extended, setting the new period until January 31, 2024.
On the other hand, this decree-law includes a line of guarantees of 2,500 million euros for the purchase of a first home for young people under 35 years of age and families with dependent minors of no age limit, but with income of up to 37,800 euros per year. With this measure, the Government aspires to enable the acquisition of some 50,000 homes.
Additionally, measures are included to facilitate investments by Perte Chip (semiconductors and microprocessors), while the General Subsidies Law is amended to clarify the application of measures to combat delinquency in commercial operations.
On the other hand, the package also enables the autonomous communities to limit VTCs based on environmental reasons and traffic management in cities.
Without leaving mobility, the decree includes a new deduction in Personal Income Tax (IRPF) of 15% both for the purchase of an electric vehicle and for the installation of charging systems, with a maximum base of deduction of 20,000 euros.
The tax relief will be deductible during the next two years, until the end of 2024, while it can be extended for another year when the addendum to the Recovery Plan is approved.