MADRID – Spain is working on a national plan to mitigate the social and economic impact of the war in Ukraine. The government is open to contributions from specific groups and associations, local and regional authorities, and social partners.
The president of the government, Pedro Sánchez, announced this on Wednesday morning in the La Moncloa government palace. Under the proposed measures the government is extending tax cuts for electricity, social security contributions, and aid to industry until July. Furthermore, it awaits the measures taken by Brussels to decouple gas from the electricity price.
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With this National Plan, the government wants to promote an income pact. This provides stability from the perspective of salary costs and corporate profits. They also want to protect the most vulnerable families and the most affected sectors, such as tourism and agriculture. Finally, the plan will include measures to deepen the energy transition.
Flexible dismissal
In addition, the government will accelerate the adoption and implementation of the RED flexibility and employment stabilisation mechanism. This instrument is part of the labour reform that the government recently adopted. It enables companies dealing with temporary or structural crises to take measures to shorten working hours and temporarily suspend employment contracts. Measures that are always linked to retraining programs.
Promoting Spain’s strategic autonomy
Sánchez has also called for the promotion of Spain’s strategic autonomy. Within this framework, the government will invest in sectors such as semiconductors, batteries, artificial intelligence, cybersecurity, and the production of essential medicines.
Refugees
In his speech, Sánchez also called for a coordinated and responsible response to the humanitarian emergency of the Ukrainian refugees. On the other hand, he argues in favour of adjusting fiscal rules so that the recovery can be strengthened. In addition, it will enable the government to meet investment needs in the fight against climate change, the digital transition, and strengthening common security.
