The Balearic Govern yesterday delivered a package of proposals to Madrid to address the crisis opened after the war in Ukraine which includes the approval of measures to maintain the current prices of housing rents while the high inflation rates continue, that the evictions of vulnerable families be halted while the war conflict persists, and that all people who are receiving the Minimum Vital Income, the islands income support payments or who have a recognized dependency or disability do not need to carry out procedures to be recognized as eligible for the social electricity benefit.
These measures were presented during the online meeting convened with the Minister of Economic Affairs, Nadia Calviño, with the autonomous communities, and in which participated, on behalf of the autonomous Executive, its Vice President, Juan Pedro Yllanes, and the Councilors of Labor, Finance and Social Services, Iago Negueruela, Rosario Sánchez and Fina Santiago, in that order. The Balearic Govern’s proposal stems from the meeting held last week with trade unions and employers at the Social Dialogue Table, and will also be defended by the CEOE and by the national leaderships of UGT and CC OO.
The proposals drawn from the archipelago include the fixing of maximum prices for electricity and gas, and the reduction of the weight of taxation on fuel prices and electricity supply; the reduction in price of agricultural and fishing diesel; and the reduction in the VAT of professional and industrial fuels by 10%.
In relation to manufacturing, it is requested that the moratorium on insolvency proceedings and the extension of the ICO credits for the sectors most affected by the increases in energy prices be recuperated.
It includes the request to establish a reduced VAT for non-energy raw materials and inputs used by farmers and stockbreeders; or the application of the double electricity tariff for these groups, among other actions for the primary sector.
Island Fund
The Spanish Government is also requested to create an island fund for the Autonomous Community to compensate for the increase in costs in the transport sector, especially in relation to the maritime transport of goods, as well as the structural surcharge that the islands pay for fuel.
The request for an immediate reduction in the taxes applied in ports and airports is added. In this section, an exoneration of the taxes in all the Spanish ports for fishing boats is added.
In budgetary matters, the central government is asked to urge the European Union to relax, or even suspend, the fiscal rules in order to have to have room to absorb the financial straing of the economic and social effects caused by the war in Ukraine.
Minister Negueruela announced yesterday that on Wednesday a meeting of the Pact for the Reactivation will be held, to which the parties that are members, such as the PP, have also been invited, to analyze these measures and those of a complementary nature that the Balearic Govern itself can implement, and she recalled the experience acquired in this matter as a result of covid.
THE PROPOSALS BY THE BALEARIC GOVERN
HOUSING
To avoid the increase in rents. The Govern asks Madrid for measures to avoid increases in rents while the current inflation rates are maintained, to stop evictions and to facilitate the access to the social electricity benefit.
TRANSPORT
Creation of an island fund. To help the transport sector, the central Government is requested to create an island fund to compensate for the increase in costs, and the reduction of port and airport taxes.
PRIMARY SECTOR
Application of a reduced VAT on raw materials. For the agricultural and fishing sector, a reduced VAT is requested for non-energy inputs and raw materials used in these sectors, or the application of the double electricity tariff.
PRICES
Maximum limits on gas and electricity. It is demanded that maximum prices be fixed for gas and electricity, and that the fiscal pressure on the price of fuels and electricity supply be reduced.
MANUFACTURING
Moratorium on insolvency proceedings. It is requested to recover the moratorium on insolvency proceedings and the extension of ICO credits for the sectors most affected by the increase in energy prices.
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