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Montero affirms that the measures “that have already been approved” will be extended to alleviate the impact of the war

MADRID, 1 (EUROPE PRESS)

The Minister of Finance and Public Function, María Jesús Montero, stated this Wednesday that the Government’s intention is to extend for three more months the measures “that have already been approved” of the royal decree law to alleviate the economic consequences of the war in Ukraine .

Montero recalled that what the President of the Government, Pedro Sánchez, transferred yesterday in his appearance after the extraordinary European Council in Brussels, and confirmed this Wednesday, is the extension of the royal decree law itself.

“Therefore, it would not be only for carriers (some of the measures) but it would be to extend the measures that have already been approved and extend them for a similar period”, explained the head of the Treasury in statements to the media before participating in the act of presentation of the solidarity medal with Ukraine produced in the National Currency and Stamp Factory.

All this, despite the fact that the Minister of Consumption, Alberto Garzón, has affirmed this Wednesday that the Government “is studying and negotiating” to introduce greater progressivity in the fuel bonus, included in the decree, so that this measure is more effective and it reaches those who “truly” need it and not the population as a whole.

On the contrary, the Minister of Finance has remarked that “there is no detail or any approach added to what was already being produced in the previous decree”.

Montero has pointed out that the Government has chosen a quarter as a temporary period, since it allows them to select “accurately” all the measures that have to continue accompanying the country’s economy, companies and families.

Valid until June 30, the Government approved last March the decree that includes tax cuts to lower the price of electricity, a bonus of 20 cents on fuel per liter or the establishment of a limit of 2% to rental reviews.

The 15% increase in the amount of the Minimum Vital Income (IMV) is also incorporated to reach more vulnerable families and is extended to 600,000 families plus the electricity social bonus, reaching 1.9 million households.

THE “MOST IMPORTANT” FISCAL REDUCTION THAT A GOVERNMENT HAS EVER UNDERTAKEN

Asked about the possibility of the IRPF rate being deflated in its lowest sections, as defended by the PP and the former socialist minister Jordi Sevilla, the minister has defended that the Government has taken measures that are fundamentally aimed at not produce any kind of second-round effect.

Thus, it has valued the tax reduction for electricity that until June will mean a loss of up to 7,000 million for public coffers and if it is extended until the end of the year it will be 12,000 million. “It is the most important tax reduction that a government has ever undertaken,” he emphasized.

Thus, he stressed that, in his opinion, it is more convenient to give direct aid to products in which prices are growing, such as fuel, and selectively reduce taxation than “not doing it in a general way that could produce a second-round effect round”.

THE EXECUTION OF INVESTMENTS HAS SLOWED DOWN DUE TO THE CONTEXT

On the other hand, after the Generalitat described the real investment of the State in Catalonia as “unacceptable”, the minister has argued that the years 2020 and 2021 have been very complicated. “Not only has execution been slowed down by the Government of Spain, but also by other Administrations,” she pointed out, after indicating that many projects underway were left behind due to the impact of the pandemic.

In addition, Montero explained that there was a rise in the prices of certain materials since last year, which also caused an impact on the works and that the Government has tried to correct with the approval of a royal decree law.

“There are objective causes that explain why the Public Administrations as a whole have slowed down execution and that slowdown is asymmetric, that is, it has an unequal distribution within the territory”, he stressed.

Looking to the future, the minister has conveyed the Executive’s intention that “the entire budget be executed once the resources have been put into operation”.