The Council of Ministers awaits the completion of negotiations between PSOE and Unidas Podemos before ratifying the third anti-crisis package. This royal decree outlines measures to soften the impact of the war in Ukraine, with announcements expected from Prime Minister Pedro Sánchez after the final Executive meeting of the year. The decisions touch on fuel, commuter tickets, Rodalielike transport, and foreign investment in Spanish companies, affecting daily life and business alike for readers in Canada and the United States seeking a clearer view of Spain’s support measures.
Discounts on fuel and assistance to the countryside, transport and others
The decree introduces 20-cent shield discounts through 2023 and supports additional costs in fuels for farmers and fertilizers, crucial inputs for production. The aid totals up to 300 million euros, offering 20 euros per hectare on dry land and 50 euros on irrigated land, with the intention of easing agricultural expenses for rural communities and food producers.
Assistance for diesel consumption is approved for fishing vessel and trap owners, with allocations of 120 million euros. Subsidies are also planned for maritime passenger and freight transport services on routes serving public interest across the Balearic and Canary Islands. Road transport companies will receive 20 cents per liter of diesel from January 1 to March 31, 2023, and 10 cents per liter from April 1 to June 30, 2023. Direct and extraordinary support will also cover fuel and energy products for taxis, chauffeured transport, ambulances, and urban and suburban passenger services.
Staple food
The coalition government is negotiating improved prices for essential foods. A 300 euro shopping check is proposed for vulnerable families, along with a value-added tax deduction on basic foods. The draft decree notes that price increases are especially evident in staples such as flour, butter, and sugar, where annual rises have been notable.
Advantages in transportation
The government seeks to cap highway toll increases and to temporarily suspend automatic wage updates at 8.5 percent. The measure is described as extraordinary and temporary, lasting up to two years or until a new toll-review system for concession roads is approved. In addition, a plan to reduce multi-trip tickets for users of state-controlled public road transport is under consideration. From February 1 to June 30, 2023, those with at least 12 trips in the first quarter and at least 16 trips in the four-month period may receive extended discounts or exemptions. Renfe’s 50 percent discount is set to continue through January 31, 2024, with a new multi-trip ticket becoming free for commuters meeting existing Rodalies requirements.
Shelter measures
As the PSOE government and Unidas Podemos partners finalize an agreement on leases, the draft includes amendments to royal decree 11/2020 addressing eviction procedures and protections for vulnerable homes without shelter options. Other provisions related to tenant claims, contract expirations, and related legal processes have been extended to June 30, 2023. There is also a review cap of 2 percent on rent increases in the absence of a party agreement by 2023.
Sánchez and Díaz agree to freeze the rental price for six months for new contracts
The draft continues to shape rental policies and protections for new leases, aligning measures with broader anti-crisis objectives while seeking to stabilize housing costs for households facing housing stress.
Foreign investment
In tandem with crisis measures, the decree contemplates limiting significant investments by third-country nationals or foreign entities in strategic activities. The period restrictions, previously ending on December 31, have been extended by two years. Investments with a stake of 10 percent or more or those granting control are scrutinized. This affects both listed and unlisted Spanish companies when deal values exceed 500 million euros, aiming to preserve national strategic interests amid market volatility.
Minimum wage and non-contributory retirement
In the absence of an interprofessional minimum wage agreement for 2023, the government’s draft text maintains the current 1,000 euro monthly wage in 14 payments, pending formal approval of the royal decree. When a final amount is established, the administrator will enact it and may implement it from January 1 with possible retrospective effect. The anti-inflation package includes extending inflation protection into 2023, a 15 percent increase in non-contributory pensions, and updates to the Minimum Vital Income based on pension figures. A labor aid contract extends to January 1, 2024, with a program allowing workers to partially retire in exchange for hiring younger staff, alongside a new public employment proposal for 2022 that creates up to 1,000 posts on the Local Government Scale with national qualifications.
Extension of tax relief on electricity and natural gas
Beyond newly created measures, the government broadens existing reliefs, including a 5 percent VAT reduction on electricity bills for vulnerable households until June 30, a 0.5 percent Special Electricity Tax, and the suspension of the 7 percent electricity generation tax. VAT on biomass, wood pellets used for heating, and natural gas remains at 5 percent. Disposable surgical masks stay taxed at 4 percent, while vaccines and COVID tests persist at zero percent. These steps are intended to cushion households in the toughest months while supporting energy affordability across the economy.