The government approved a seventh set of measures to ease the effects of the crisis on households and businesses. The package totals 3.8 billion euros and blends extending existing aid, generally through December 31, with new policies and fresh steps. The administration estimates a grand total of 47,000 million euros allocated across seven inflation-relief schemes aimed at protecting the most vulnerable groups. The plan also includes a royal decree law package used to transpose expired European directives or align rules with European Union decisions, as noted by the first vice president. Additional urgent actions are to be taken to ensure the timely execution of key projects under the Improvement Plan, as explained by Nadia Kalvino. The royal decree will be submitted as a consolidated measure for congressional approval.
The primary steps to curb inflation and shield vulnerable populations include:
- Residential protections: extending evictions suspensions and rent moratoriums for at-risk households.
- Food costs: the value-added tax reduction on a broad basket of essentials remains in place through December 31.
- Fuel support: a carrier fuel bonus continues, with 10 cents per liter for the first quarter and 5 cents per liter from October through December.
- Electro-intensive sectors: ongoing assistance for facilities in this category.
- Butane pricing: price caps stay frozen for a bottle.
- Public transport: subsidies to cover at least half the cost of transit passes, varying by region and municipality.
In addition, the royal decree introduces measures not aimed directly at inflation control but designed to support households and public welfare:
- Family mediation: new permissions for mediation under family law.
- Student support: a delay in mandatory contributions for all interns.
- Renewable energy: companies gain six months to begin constructing wind and solar farms.
- Electric vehicles: a 15% personal income tax deduction on new electric car purchases, up to 3,000 euros.
- Taxi and ride-hailing services: the plan designates taxis as a public-interest service and authorizes regional authorities to regulate ride-hailing more strictly.
Housing and rental policies
The most notable changes involve housing security. Automatic renewal of leases with unchanged terms is paused for six months, restricted to vulnerable families, while evictions for sensitive households remain suspended.
For consumers, relief is extended through year-end. The VAT cut on basic foods continues, and the butane price cap remains frozen. The carrier fuel bonus endures through the year, with the same per-liter structure: 10 cents in the initial quarter, 5 cents later in the year.
Car and public transport support
The royal decree adds new provisions and extends existing ones. Measures to lower transport costs run through December 31, including subsidies to reduce public transit card costs and to encourage sustainable commuting.
The plan also targets the auto sector. A 15% personal income tax deduction applies to new electric vehicle purchases, with incentives for charging infrastructure and plant construction to boost charging stations.
Following a ruling by the European Union Court of Justice that limited environmental criteria for taxis and ride-hailing services, the government approved an amendment to curb environmental loopholes, as explained by the vice president in a press conference.
Work permits and scholarships
On labor issues, the coalition government approved two revisions. The most important expands family-law permits to support workers balancing work and caregiving duties. One new allowance grants up to five days per year for serious accidents or illnesses and is paid; another provision allows a paid absence for force majeure distributed by hours, up to four days per year. A third, unpaid, option provides eight weeks of parental leave, usable full or part time, until the child reaches eight years of age.
While these permits move forward, others, such as universal scholarship contributions, are delayed to January 2024. The postponed measures will raise costs for universities and employers yet will benefit nearly one million students in practice. This shift aligns with broader pension reform timelines already discussed by authorities.