Of the aid of 200 euros for the unemployed and self-employed and the reduction of the transport subscription to the rise of 15% for certain pensions: the new measures, one by one

The Council of Ministers approved today at an extraordinary meeting a package of economic measures "in response to the energy crisis caused by Putin's war in Ukraine" and "extremely high" inflation, according to the Prime Minister, Pedro Sánchez. These are the measures, which will last until the end of the year, as well as their repercussions among citizens. Among them, "a containment of inflation at 3.5 points" compared to the current 8.7%, he stated. Sánchez has said that the Executive "is making an extraordinary effort" that translates into 9,000 million euros. Some 5,500 million in expenses "to protect families" and 3,600 million as a reduction in income due to tax rebates. The measures approved today together with those that were launched previously, add up to 15,000 million euros. Reduction of VAT on electricity from 10 to 5% The measure, already announced by Sánchez last Wednesday in Congress, will mean only a reduction of about five euros on an average bill of 100 euros. The Third Vice President and Minister for the Ecological Transition, Teresa Ribera, has stated that the VAT reduction is not the solution. The general secretary of the UGT, Pepe Álvarez, has said that this reduction seems good to him, as long as it is accompanied by a tax on the profits of the electricity companies. The Government affirms that this cut means a reduction in income of about 220 million euros each quarter. It must be remembered that a year ago, the Executive lowered this VAT from 21 to 10%. Then, the price of electricity was 85.73 euros per MWh. Currently, it exceeds 200 euros per MWh, despite the mechanism that came into force on the 15th of this month that caps the price of gas used to generate electricity. Sánchez has stated that thanks to this "Iberian exception", the wholesale price of electricity is between 40 and 50% cheaper than in the rest of the main European economies. Discount 20 cents on fuel This reduction began to be applied on April 1, when the average price of 95-octane gasoline was 1,818 euros per liter and 1,837 euros for diesel. Added to this discount are other offers made by the big oil companies. Filling the tank of a vehicle exceeds 100 euros and the minimum bonus is about 12 euros. However, the discount has become outdated, since days ago fuels exceeded two euros per liter and now cost 2,142 and 2,077 euros, respectively. In other words, gasoline has become more expensive by 18% in two months and diesel by 13%. The rise in fuel prices has caused carriers to threaten new strikes again, mobilizations that will decide tomorrow, Sunday. Since the beginning of 2022, gasoline has risen 45% and diesel 54.5%. Finally, the discount will be maintained until the end of the year as it is now, despite the fact that United We Can have requested a restructuring of it so that not all consumers benefit from it. 50% discount on the transport pass As of September 1, passenger transport passes for state public services will drop by 50%, a percentage that will be reduced to 30% if the service is provided by regional and local entities. These administrations may raise the reduction to 50% with their own resources. This is one of the novelties of the royal decree. Aid of 200 euros for the unemployed and self-employed Another novelty is the aid of 200 euros for self-employed workers with low incomes and for the unemployed. They can be requested from July 1. In the previous days, the amount of 300 euros was considered. 15% increase in some pensions Non-contributory retirement and disability pensions will also increase by 15%. It supposes about 60 euros per month, according to Pedro Sánchez. Some 4 million citizens will benefit from this increase, together with the aid of 200 euros for the unemployed and the self-employed. Butane cylinder and masks The price of the butane cylinder, which is currently at record highs (19.55 euros since mid-May), will be limited, and the 4% VAT for masks will be maintained. Next tax on energy companies Finally, the President of the Government has announced a new tax that will be levied on the "extraordinary profits" of energy companies as of January 1, 2023. "The interest of the majority must be above the selfish interests", said Sánchez, who underlined that "these companies obtain profits at the cost of harming the majority". In recent weeks, the controversy over this issue has intensified within the coalition government, since the second vice president, Yolanda Díaz, insisted on implementing this tax immediately, to which the first vice presidents, Nadia Calviño, and third, Teresa Ribera, as well as the Minister of Finance, María Jesús Montero.

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