Lower taxes for mortgage holders and financial aid: the Government's proposals to combat rising prices

PalmThe government will approve a decree-law before Easter with tax cuts and direct aid to sectors affected by price increases resulting from the war in Iran, including deductions for variable-rate mortgages. These measures will complement thesocial safety net announced by the Spanish government last FridayThese measures include VAT reductions on fuel and an extension of rental contracts. The government wants to implement them with the approval of all parties, and for this reason, the First Vice President and Minister of Economy and Finance, Antoni Costa, has convened them this Wednesday.

It was the eighth meeting Costa held in just over a week to address the price increases resulting from the war. He had previously met with unions and employers' associations, representatives from commerce, industry, distribution, the primary sector, shipping companies, and construction, as well as with island councils and municipalities. Spokespeople for the parliamentary groups, who expressed their willingness to support the Government's proposal, explained after the meeting that the Minister's intention is to approve tax cuts and direct aid to the affected sectors, and to implement regulatory changes, the details of which they did not specify. In parallel, a social aid package is being prepared, which is expected to be approved later. In statements to the press, the PP spokesperson in the Parliament, Marga Duran, emphasized that the regional decree will prioritize direct aid to the most affected sectors, such as agriculture, transportation, and construction. She said this after the president, Marga Prohens, deemed the measures announced by the Spanish Prime Minister, Pedro Sánchez, "insufficient" because they do not take into account the "insularity" of the Balearic Islands. However, she applauded the reduction of the VAT on fuel to 10%. The aid promoted by the State will have an impact of over 70 million euros in the Islands, according to the Spanish government delegation.

Good disposition of the parties

The PSIB spokesperson, Iago Negueruela, expressed satisfaction at having found common ground with the Government on several proposals. These included lowering fuel costs and promoting alternative energy sources to curb inflation, as well as offering discounts on variable-rate mortgages. The Socialist leader emphasized the need to strengthen the social package by capping rental prices in the Balearic Islands. Lluís Apesteguia (MÁS per Mallorca) advocated for reinforcing the social package to protect the most vulnerable members of the population and the middle class from rising housing costs. Vox, meanwhile, requested that aid programs exclude undocumented immigrants.