Canary Islands finalizes its proposal to the State to contain the economic impact of the war

The regional government prepares its proposals for fiscal and economic measures to help the sectors affected by inflation and war. / EFE

Román Rodríguez brings to Monday's meeting measures to compensate the cost of transport and support the most affected sectors

Loreto Gutierrez

The remoteness and insularity represent an added disadvantage in the current situation of escalating inflation and require differentiated solutions to cushion the economic impact of the war in Ukraine. With this approach, the Government of the Canary Islands is going to submit to the State Executive a package of proposals to fight against the effects of inflation that will include specific compensatory measures to sustain the island's economy in the face of the onslaught of the crisis. Next Monday the 21st, the Vice President and Minister of Finance, Román Rodríguez, and the Minister of Economy, Elena Máñez, will transfer the Canarian proposals to the State Government, during the telematic meeting that the Ministers of Finance, Economy and Labor -María Jesús Montero, Nadia Calviño and Yolanda Díaz- plan to meet with their counterparts from the autonomous communities to design the national response plan to the economic blow of the war that will go to the Council of Ministers on the 29th.

To prepare the package of measures that it is going to transfer to the State, the Canarian Government is receiving contributions from the different economic sectors of the archipelago and analyzing the actions that may be most effective in avoiding the collapse of the island's economy just when the recovery after two years of pandemic. The Deputy Minister of the Presidency of the regional Executive, Antonio Olivera, has anticipated that the work will continue until the day of the meeting. “We are compiling measures in terms of compensation for transport costs due to insularity and remoteness, working on support measures for certain economic sectors such as livestock or some industrial sectors, and identifying which others are the most affected,” he says, “but we continue closing proposals and analyzing different cases and we will continue over the weekend for Monday to have a set of measures closed to propose and request from the state government, "he adds.


  • Meeting
    The ministers Montero, Calviño and Díaz will meet on Monday via telematics with their regional counterparts.

  • Interlocution
    The regional Executive is receiving contributions from the different economic sectors of the islands.

  • Taxes
    The Canary Islands will lower fuel rates only if the State does so, to maintain the tax differential.

  • Brake
    Rodríguez maintains that the only way to stop the rise in energy prices is by intervening in the market.

Although the response plan that the Sánchez Executive has promised to approve at the end of the month -after the European Council of 24 and 25- is statewide, President Sánchez announced on Wednesday in Congress his willingness to incorporate specific measures to Canary Islands, where actions such as lowering the VAT would have no effect, and invited specific proposals to be put on the table to study their feasibility.

The Canarian Government has been opposed to lowering taxes from the outset because it ensures that the reduction would not be reflected in prices and would have a perverse effect on inflation, in addition to implying a decrease in the resources allocated to financing essential public services . But given the possibility that the state Executive decides to opt for the tax reduction to try to stop the escalation of prices - Minister Bolaños has guaranteed that there will be measures to lower "imminently" the price of electricity, gas and gasoline, without specifying at the moment how he will do it-, Román Rodríguez has advanced that the Canary Islands will lower the taxes on gasoline and diesel if the Sánchez government cuts the taxation of fuels, to maintain the fiscal differential of the islands with the rest of the State despite considering that the reduction will not stop prices. The Canarian vice president maintains that the only way to stop the rise in the cost of energy is by intervening in the market, either to set a maximum price or with an extraordinary tax on the profits of energy companies.





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