June 13, 2021

The Government proposes giving a “public inheritance” to young people to buy a house or start a business




«The world changes and our welfare state must change with it. For this reason, Spain should study, debate and evaluate new collective protection mechanisms that help to expand or reinforce the current ones ”. This is how the Government begins to propose an embryonic idea for ‘give away’ money to young people when they reach a certain age so that they can acquire a home or set up a business, as it is included in
the ‘Spain 2050’ strategy

Technically this is known as “Universal public inheritance” in the document released by the Executive this morning in Madrid. «An economic endowment that all the young people of the country would receive once they reached a certain age. This endowment could be used to purchase the first home, finance the creation of a business, or complete training, “he says.

The Government recognizes that now this “It may sound utopian”, but it would be feasible to see it in the future in “some countries”. In this sense, the text defends that “Spain should, therefore, explore this possibility taking into account the levels of inequality existing at the time of its implementation, as well as its additional effect to other social measures.”

This measure is contained in Chapter 8, entitled “Reduce poverty and inequality and reactivate the social elevator”. Among the arguments put forward by the document, prepared for the Executive with the contribution of institutions such as Airef and the Bank of Spain, as well as a hundred experts, is that “intergenerational wealth inequality is one of the greatest challenges facing those facing European society. ‘ In addition, it ensures that there are estimates that inheritances determine almost 70% of the inequality of wealth in Spain.

Thus, he considers that “in wealth inequality”, inheritances play a “crucial” role and that it “decisively affects equity among the young generations.” An approach that is also necessarily related to the old aspiration of the PSOE and United We Can to increase the payment of inheritance taxes in some territories such as Madrid that subsidize the transmission between certain relatives.

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