Spain, new economic and social measures social emergency

At a press conference, the Second Vice-President and Minister of Social Rights, Pablo Iglesias, together with the Minister of Finance and spokesperson for the Spanish Government, María Jesús Montero, presented the new economic and social measures in the context of the coronavirus crisis.

The Minister María Jesús Montero, noted the arrival of a plane with 14 tons of medical material from China, also, is expected to arrive 2 million masks for health personnel, 180,000 goggles and about 63,000 disposable gowns to be distributed in all regions. He emphasized that, from March 10 to date, about 10 million masks have been distributed for patients and health personnel. It is expected that, in the coming days, more material will arrive to supply the needs of the health system, as well as other sectors that require this material; specifically, nursing homes. The importance of the reconversion of some productive sectors towards the production of sanitary material was noted, thanking these sectors for their collaboration, innovation and fast adaptation to the crisis situation, which allows that already are being manufactured in the national market respirators, masks, gels and other sanitary materials to face the coronavirus.

The agreement to restrict the mobility of workers between employers, trade unions and the government is highlighted, highlighting the control of the pandemic.

Afterwards, the vice-president, Pablo Iglesias, presented the measures adopted:

Firstly, in the area of housing, all evictions without alternative housing for the most vulnerable groups are suspended from today, March 31st, until 6 months after the end of the health alarm. No one can be evicted from their homes. Likewise, all rentals in force and about to expire are extended for 6 months from this date. Nor can the value of the rent be increased during the next 6 months.

It is implemented by taking advantage of the public credit system, public micro-credits so that the most vulnerable people can pay the mortgage of their main residence, with zero interest (0). The tenants who benefit from these credits will be able to return them within 6 years, extendable to 10 years. In this case, unemployed persons, those affected by ERTES, reductions in working hours or self-employed persons who have seen their income reduced, may take them out. If there are tenants who cannot afford to pay their rent or who cannot pay back the aid received, the government will take over their debts in full. It was made clear that a small landlord is not the same as a vulture fund or a large tenant. It is not the same, a pensioner who has a second home with which he can have an income that helps him to make ends meet, with a person who has several homes for rent, or a vulture fund that has thousands of homes and premises, therefore, small owners will receive the full value of the rent of their homes, and guarantees that the large holders and investment funds will assume part of the impact of the measure by "removing" or restructuring the debt, that is, in this case, these large holders or vulture funds have two options, one of which is that the tenant pays only 50% of the debt, or the tenant can pay it over a period of 3 years. With this measure, it is guaranteed that the big businessmen assume part of the crisis, and the constitutional right to housing is protected.

Secondly, the mortgage moratorium is extended to include self-employed people who are unable to pay, due to business interruption or because the turnover is insufficient, therefore, until the last day of the health alarm the creditor entity will not be able to demand any payment, or in any way that is part of it, aswell as the interest on mortgage debts.

Thirdly, extension of the extension of the supply of basic services and social bonds. Therefore, while the health alarm is in force, the service of electricity, water and gas to the most vulnerable people in their habitual residence cannot be suspended for any reason. The social bonds are extended, so that workers affected by dismissals and self-employment can be taken in; who have seen their activity affected or their turnover reduced.

Fourthly, temporary unemployment benefit and women domestic workers. Around 440 euros/month will be granted to all temporary workers who have had their contract terminated after the declaration of the state of alarm, and who did not meet the minimum requirements for access to unemployment benefits. This group will be treated in the same way as those working.