The Balearic Govern will mobilize 100 million euros, directly and immediately, to cope with the escalation of electricity and fuel prices as a result of the Russian invasion in Ukraine. This was announced yesterday in the Parliament by the president, Francina Armengol, who specified that it is a shock plan of 25 measures that will complement those agreed in the Council of Ministers by the central government (10 billion euros in ICO loans and 6 billion in direct aid and tax cuts on electricity that had already been approved).
Specifically, the Balearic Govern will provide 70 million in direct aid to companies in the most affected sectors and 36 million more in extraordinary credits through the public company ISBA. All these measures, which are being approved today in an special Consell de Govern, have been divided into three blocks: transport and the primary sector, mobility and energy.
Thus, in addition to the 5.5 million in aid to the transport sector announced last week, Armengol announced an allocation of 7 million in aid and 6 more in credits for the primary sector. “Our food supply depends on this,” she said. In addition, the Balearic Govern will create two other lines: the first will compensate fishing vessels for the rise in fuel prices, with 1.5 million euros; the second will subsidize the transport of raw materials for the agricultural and livestock sector, with 2.5 million euros. “There will also be an exemption from taxes for fishermen in regional ports, and taxes for shipping companies that transport goods will be reduced,” added Armengol.
More aid from the Balearic Govern
In parallel, and with the aim of responding to the other sectors that are also being affected by the high price of energy, 30 million in direct aid will be made available, an amount that adds to the 70 million euros previously available in ISBA. “We will support small and medium-sized enterprises, in key sectors such as local commerce. We will therefore reinforce the bonus campaign to stimulate activity. Initially we will activate 1.25 million euros (which will generate customer purchases worth 3.75 million, they estimate), but the goal is to add municipal programs and triple this amount, up to ten million,” stressed the president.
On the other hand, in the package of measures announced there will be an update of the budget for public works contracts to “protect employment, guarantee the execution of key investments and to continue with the largest public housing construction plan in history,” Armengol stressed. A revision mechanism for awarded contracts will be activated, which will mean that the Govern will channel directly to companies an additional 36.8 million euros per year, to which must be added the updates that the councils and town councils wish to make for their part.
“All European, state and regional measures allow us to be confident that our recovery will continue to make us lead the growth of employment and the economy,” said Armengol. And the growth forecast for 2022, according to the economists of the Balearic Govern, is, even in the weakest scenario, above 10%, “guaranteeing a year of economic leadership and job stability after having already surpassed the levels of employment prior to the pandemic,” she concluded.
Response to refugees
The Government continues to support the State in the reception of refugees arriving in thefor this reason, personal income tax deductions will be introduced for people who take in refugees or make donations to help the victims of the conflict.
At the same time, other measures are being put in place, such as the issuing of health cards, schooling for children, registration with the SOIB and initiatives such as the one announced yesterday by the president: free use of public transport. 500 health cards and 70 hospital beds have been set up by the Balearic Govern for people fleeing the war.
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