Extending rental agreements for up to two years will benefit 24,000 homes in the Balearic Islands

PalmThe package of measures approved by the Spanish government to address the effects of the Iran-Contra conflict will have an impact of over 70 million euros on the Balearic Islands. This was confirmed on Monday in Palma by the Secretary of State for Tourism, Rosario Sánchez, after meeting with social and economic stakeholders. According to her, the set of measures—valued at 5 billion euros and comprising some eighty initiatives—will primarily benefit the Islands through tax reductions on electricity and subsidies of 20 cents per liter of fuel for industries such as transportation. Furthermore, the extension of the electricity and heating subsidies, as well as the extension of rental contracts for up to two years, are expected to benefit approximately 24,000 homes in the archipelago. The Government Delegate in the Balearic Islands, Alfonso Rodríguez, has urged the regional government to approve additional measures to protect families and businesses "as soon as possible." He also called for the support of the People's Party (PP) and Vox in Congress to validate the anti-crisis decrees, which include both tax breaks and a temporary freeze on rents.

Criticism from the business sector

However, several business organizations have expressed their rejection of the measures. The Federation of Small and Medium-Sized Enterprises of Mallorca (Pimem) considers them "disappointing and harmful" and does not rule out protests if there are no changes. The president of Pimem's Transport Association (Astam), Jeroni Valcaneras, has stated that the fuel subsidies do not compensate for the real additional costs suffered by the sector and has criticized the fact that they benefit private vehicles more than professional ones. Similarly, the president of the Balearic Islands Business Association for Freight Transport, Ezequiel Horrach, has described the measures as "insufficient," while the Confederation of Business Associations of the Balearic Islands (CAEB) has warned that they are more geared towards the general public than the business sector. Other voices, such as the Unió de Pagesos (Farmers' Union), have called for more support for the primary sector in the face of rising costs, while CCOO (Workers' Commissions) has defended the government's package, especially the housing-related measures. New meeting with the tourism sector

Finally, Rosario Sánchez announced a new meeting with the tourism sector after Easter to analyze the impact of the conflict. In this regard, she recommended that companies avoid raising prices in the short term while they monitor the international situation. She concluded that the measures adopted aim to contain the impact on the cost of living and guarantee economic activity in a context marked by uncertainty.