In a collaborative session, the coalition partners representing socialist groups and Sumar reached a consensus on a set of measures bearing the name social shield. The aim was to cushion the fallout from the health crisis, the ensuing war in Ukraine, and the ongoing conflict in Gaza. Many of the measures extend existing policies that are due to expire on December 31. The goal is to provide relief while maintaining a steady path toward stability.
1. A year-long free pass for heavy users of regional and national rail and bus networks — Cercanías, Rodalies, Media Distancia, and state bus lines — with an accompanying discount on Avant services. The State also sustains a 30% subsidy to autonomous communities for urban and intercity tickets, conditional on each community contributing at least 20%, so that the combined support ensures a minimum 50% reduction for travelers who qualify.
2. Suspension of evacuations and housing relocations for households facing vulnerability when no alternative accommodation is available. The measure prioritizes preserving housing stability during emergencies and ensures families have a safety net when options are scarce.
3. Zero value-added tax on essential foods, including staples such as bread, eggs, and milk, with a reduced 5% rate applying to items like pasta and cooking oils. This tax framework aims to keep essential nourishment affordable while supporting a straightforward pricing structure for households across the country.
4. Extension of the maximum social bonus for vulnerable families, alongside regulated gas tariffs and tight controls on price increases for butane cylinders. These steps are designed to shield low-income households from steep energy costs while maintaining predictable energy planning for households and small businesses.
5. Expansion of support measures to industry, including reducing electricity charges to 80% for electro-intensive sectors and offering flexibility in adjusting electricity supply contracts. This policy helps energy-intensive manufacturers stay competitive and smoother through price volatility while sustaining employment and investment in production capabilities.
6. Continuation of VAT reductions on electricity, along with the special electricity tax and the tax on electricity production. The policy maintains a favorable fiscal climate for power costs, supporting households and businesses during periods of price pressure.
7. A revaluation of pension contributions tied to the social security index to 3.8%, providing improved benefits for retirees as part of the broader social protection framework. The adjustment reflects ongoing efforts to preserve purchasing power for senior citizens in a changing economic landscape.
8. Elimination of commissions charged for cash withdrawals at teller windows for elderly and disabled individuals, ensuring easier access to cash and reducing unnecessary costs for those who rely on traditional banking services.
9. Abolition of bank commissions or penalties for early repayment of variable-rate loans, giving borrowers greater clarity and flexibility in managing debt while encouraging responsible financial planning.
10. Delegation of the administration of the minimum vital income to autonomous communities that request it, allowing regional authorities to tailor the program to local needs and administrative realities while preserving a national safety net for those most in need.
Notes: The package reflects a coordinated approach to social protection, energy affordability, and economic resilience. It seeks to balance immediate relief with long-term fiscal responsibility, aiming to stabilize households and industries alike in a period marked by geopolitical tension and economic volatility. Attribution: policy brief from coalition discussions and public communications.