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The Government has approved the Royal Decree-Law by which most of the response measures to the consequences derived from the conflicts in Ukraine and the Middle East are extended.
The Executive has also approved eliminating commissions for withdrawing cash at the window for people over 65 years of age or with disabilities and raising pensions by 3.8%.
The 50% discounts on multi-trip tickets and tickets for urban and interurban public transport are extended throughout 2024.
VAT reductions on basic foods are maintained until June 30, 2024.
The suspension of evictions and releases for vulnerable families without a housing alternative is extended during 2024.
The prohibition on cutting off basic supplies of electricity, water and gas to vulnerable consumers in the event of non-payment remains in place for six more months.
The reinforced discounts of the social bonus and the limit on the growth of the Last Resort Rate for gas continue, until June 30, 2024.
⚡ The Executive maintains for six months more the 80% discount on the electricity tolls of the electro-intensive companies and the flexibility to modify the contracted electrical power and the gas supply contracts.
???? Aid is extended for those affected by the La Palma volcano.
The Council of Ministers has approved a Royal Decree-Law adopting measures to address the economic and social consequences derived from the conflicts in Ukraine and the Middle East, as well as alleviating the effects of the drought. The rule includes the extensions of initiatives in force from 2022 and 2023.
During his appearance at the subsequent press conference, the President of the Government, Pedro Sánchez, stressed that the objective of these measures is to maintain the social shield and protect families, workers, pensioners and the most vulnerable groups. , as well as attract investors and reinforce the stability of the financial system.
Revaluation of pensions according to the CPI
The Government has approved the revaluation, in accordance with the Consumer Price Index, of 11.8 million pensions and benefits in 2024. The increase will be 3.8% in general for pensions from the Social Security system and passive classes of the State. Minimum, non-contributory pensions and the minimum vital income will rise by 6.9%, and those for widows with family responsibilities by 14.1%.
Pedro Sánchez has highlighted that the measure is one of the main achievements that the Government has consolidated during the last four years: “There were many retirees who demonstrated during the financial crisis as a consequence of the cuts in the public pension system” made by previous governments and “today retirees have a revaluation that is updated every year according to the evolution of the cost of living.”
Extension of protection for workers
The royal decree includes the extension of the Minimum Interprofessional Wage currently in force until the Social Dialogue Table reaches an agreement to increase it.
The ban on layoffs due to increased energy costs or for reasons related to the invasion of Ukraine is also extended until June 30, 2024.
The decisions to address situations of social and economic vulnerability and for the recovery of the island of La Palma are extended until the same date.
Extension of tax cuts on food and energy
The Chief Executive has highlighted that, as he announced in his investiture speech, basic foods, such as bread, cheese or eggs, will maintain a VAT at 0%. Pastas and olive and seed oils will continue to have the reduced VAT of 5%. This tax reduction, effective during 2023, will extend until June 30, 2024.
Extension of energy measures
In energy matters, the president has announced that, given the gradual fall in energy prices thanks to the management of the Government at the European and state level, some tax reductions linked to electricity and the gas.
The VAT on electricity will continue at 10% during 2024 on all components of the bill. The gas tax will remain at 10% during the first three months of 2024. The Special Electricity Tax will have a reduced rate during the first semester: 2.5% until the end of March and 3.8% until the end of June.
Extension of the tax on business profits
The president has also indicated that taxes on extraordinary profits for large energy companies and banks will be extended for one year.
In the case of the energy tax, Pedro Sánchez has explained that modifications will be introduced in the General Budget Law of 2024 so that strategic investments linked to industrial projects and the decarbonisation of the production system have deductions.
Extension of protection for vulnerable groups
Protection measures for the most vulnerable groups will be maintained for the next six months. Among them, the Chief Executive has cited the limitation of the increase in the price of the regulated household gas tariff and the butane cylinder. Sánchez has stressed that the suspension of evictions and releases for vulnerable households without housing alternatives will be maintained throughout the year.
In addition, the Executive has decided to extend, for six months, the prohibition on cutting off basic supplies of electricity, water and gas to vulnerable consumers and the reinforced discounts on the social bonus.
Extension of support measures for the business community
Pedro Sánchez has stated that two measures to support the competitiveness of the business fabric will also be extended for six months: the 80% reduction in electricity tolls for the electro-intensive industry and flexibility in changing electricity supply contracts.
Extension of free or discounts on public transport
The Government has agreed to extend during 2024 the free service for frequent users of conventional Cercanías, Rodalíes and Media Distancia services and state-owned bus lines, as well as 50% discounts on Avant passes.
The president has anticipated that the Executive will extend direct aid to promote the reduction of at least 50% in the price of multi-trip tickets and tickets for urban and interurban collective public transport throughout 2024.
Specifically, the Government has decided to subsidize for 12 months plus a 30% reduction in transport to the autonomous communities and local entities that commit to implementing and complementing, with at least 20%, the discounts so that, at a minimum, the price of its competition’s land transport services is reduced by half.
New social measures
In his speech, the President of the Government, in addition to exposing the extension of the already existing measures, mentioned two new decisions of a social nature included in the royal decree.
The first involves the elimination of commissions for cash withdrawals at the window for people over 65 years of age and disabled people. “It is an unequivocal measure of social justice,” he said.
The second is the transfer of the management of the Minimum Living Income to the autonomous communities of the common regime that wish to do so, so that they will be equivalent to the autonomous communities of the provincial regime that already had it transferred.
On the other hand, in financial matters, measures are expanded to protect vulnerable mortgage debtors. The annual income threshold is raised to 38,000 euros to be able to access the Code of Good Practices for debtors at risk of vulnerability.
Likewise, the suspension of all early repayment fees for variable-rate mortgage loans and conversion to a fixed rate is extended to 2024, and conversions from variable to mixed rates are maintained free of charge.
Public Employment Offer
At its meeting today, the Council of Ministers approved an additional stabilisation rate for temporary employment in the General State Administration, which will incorporate a total of 884 positions. The objective of this decision is to place the structural temporary rate below 8% in all Public Administrations, in line with the commitments in the Recovery, Transformation and Resilience Plan (PRTR).
Other agreements
The Government has agreed to extend until December 31, 2024 the participation of units of the Armed Forces and military observers in military missions abroad.
In addition, it has approved the appointment of Álvaro García Ortiz as Attorney General of the State.
More information:
The Council of Ministers has approved a Royal Decree-Law adopting measures to address the economic and social consequences derived from the conflicts in Ukraine and the Middle East, as well as alleviating the effects of the drought. The rule includes the extensions of initiatives in force from 2022 and 2023.
During his appearance at the subsequent press conference, the President of the Government, Pedro Sánchez, stressed that the objective of these measures is to maintain the social shield and protect families, workers, pensioners and the most vulnerable groups. , as well as attract investors and reinforce the stability of the financial system.
Revaluation of pensions according to the CPI
The Government has approved the revaluation, in accordance with the Consumer Price Index, of 11.8 million pensions and benefits in 2024. The increase will be 3.8% in general for pensions from the Social Security system and passive classes of the State. Minimum, non-contributory pensions and the minimum vital income will rise by 6.9%, and those for widows with family responsibilities by 14.1%.
Pedro Sánchez has highlighted that the measure is one of the main achievements that the Government has consolidated during the last four years: “There were many retirees who demonstrated during the financial crisis as a consequence of the cuts in the public pension system” made by previous governments and “today retirees have a revaluation that is updated every year according to the evolution of the cost of living.”
Extension of protection for workers
The royal decree includes the extension of the Minimum Inter professional Wage currently in force until the Social Dialogue Table reaches an agreement to increase it.
The ban on layoffs due to increased energy costs or for reasons related to the invasion of Ukraine is also extended until June 30, 2024.
The decisions to address situations of social and economic vulnerability and for the recovery of the island of La Palma are extended until the same date.
Extension of tax cuts on food and energy
The Chief Executive has highlighted that, as he announced in his investiture speech, basic foods, such as bread, cheese or eggs, will maintain a VAT at 0%. Pastas and olive and seed oils will continue to have the reduced VAT of 5%. This tax reduction, effective during 2023, will extend until June 30, 2024.
Extension of energy measures
In energy matters, the president has announced that, given the gradual fall in energy prices thanks to the management of the Government at the European and state level, some tax reductions linked to electricity and the gas.
The VAT on electricity will continue at 10% during 2024 on all components of the bill. The gas tax will remain at 10% during the first three months of 2024. The Special Electricity Tax will have a reduced rate during the first semester: 2.5% until the end of March and 3.8% until the end of June.
Extension of the tax on business
The president has also indicated that taxes on extraordinary profits for large energy companies and banks will be extended for one year.
In the case of the energy tax, Pedro Sánchez has explained that modifications will be introduced in the General Budget Law of 2024 so that strategic investments linked to industrial projects and the decarbonization of the production system have deductions.
Extension of protection for vulnerable groups
Protection measures for the most vulnerable groups will be maintained for the next six months. Among them, the Chief Executive has cited the limitation of the increase in the price of the regulated household gas tariff and the butane cylinder. Sánchez has stressed that the suspension of evictions and releases for vulnerable households without housing alternatives will be maintained throughout the year.
In addition, the Executive has decided to extend, for six months, the prohibition on cutting off basic supplies of electricity, water and gas to vulnerable consumers and the reinforced discounts on the social bonus.
Extension of support measures for the business community
Pedro Sánchez has stated that two measures to support the competitiveness of the business fabric will also be extended for six months: the 80% reduction in electricity tolls for the electro-intensive industry and flexibility in changing electricity supply contracts.
Extension of free or discounts on public transport
The Government has agreed to extend during 2024 the free service for frequent users of conventional Cercanías, Rodalíes and Media Distancia services and state-owned bus lines, as well as 50% discounts on Avant passes.
The president has anticipated that the Executive will extend direct aid to promote the reduction of at least 50% in the price of multi-trip tickets and tickets for urban and interurban collective public transport throughout 2024.
Specifically, the Government has decided to subsidise for 12 months plus a 30% reduction in transport to the autonomous communities and local entities that commit to implementing and complementing, with at least 20%, the discounts so that, at a minimum, the price of its competition’s land transport services is reduced by half.
New social measures
The President of the Government, Pedro Sánchez, after the Council of MinistersThe President of the Government, Pedro Sánchez, during his appearance to take stock of his management and present the agreements of the last Council of Ministers of the year. | Pool Moncloa/Borja Puig de la Bellacasa
In his speech, the President of the Government, in addition to exposing the extension of the already existing measures, mentioned two new decisions of a social nature included in the royal decree.
The first involves the elimination of commissions for cash withdrawals at the window for people over 65 years of age and disabled people. “It is an unequivocal measure of social justice,” he said.
The second is the transfer of the management of the Minimum Living Income to the autonomous communities of the common regime that wish to do so, so that they will be equivalent to the autonomous communities of the provincial regime that already had it transferred.
On the other hand, in financial matters, measures are expanded to protect vulnerable mortgage debtors. The annual income threshold is raised to 38,000 euros to be able to access the Code of Good Practices for debtors at risk of vulnerability.
Likewise, the suspension of all early repayment fees for variable-rate mortgage loans and conversion to a fixed rate is extended to 2024, and conversions from variable to mixed rates are maintained free of charge.
Public Employment offer
At its meeting today, the Council of Ministers approved an additional stabilisation rate for temporary employment in the General State Administration, which will incorporate a total of 884 positions. The objective of this decision is to place the structural temporary rate below 8% in all Public Administrations, in line with the commitments in the Recovery, Transformation and Resilience Plan (PRTR).
Other agreements
The Government has agreed to extend until December 31, 2024 the participation of units of the Armed Forces and military observers in military missions abroad.
In addition, it has approved the appointment of Álvaro García Ortiz as Attorney General of the State.
Reference of the Council of Ministers
Transcript of the press conference
