Spain's Sanchez pledges to boost anti-inflation policies if invested as PM
Business
Spain's Sanchez pledges to boost anti-inflation policies if invested as PM
MADRID (Reuters) - Spain's acting prime minister on Wednesday vowed to extend several measures to help people cope with the rising cost of living if he clinches another term as premier.
The policies include making free public transport available for unemployed people and youths under the age of 30 next year, Pedro Sanchez told lawmakers during his opening speech in a parliamentary vote to decide on his premiership bid, adding that he aimed to make the policy permanent.
As Sanchez spoke, about 30 demonstrators gathered behind barricades police set up on streets outside parliament to stop protesters angered by his offer of amnesty to Catalan separatists in return for supporting his bid for another term.
The measures would apply from Jan. 1. His caretaker government had already approved the measure for disabled and senior citizens.
Sanchez said the reduced value-added tax on basic food products would continue until June 2024.
He also promised to increase rental subsidies for young people and keep revaluing pensions in line with official inflation figures.
Sanchez added that his potential coalition government was planning to extend the threshold to qualify for mortgage relief support to 38,000 euros ($41,283) as part of a set of measures to help vulnerable households cope with higher borrowing costs.
The measures also include freezing the monthly mortgage payment for one year and extending the repayment period to seven years.
Under an amended industry-wide code of good practice, Spain's banks are now expected to provide mortgage support for vulnerable families earning less than 25,200 euros per year.
Additionally, middle-class families with an income of less than 29,400 euros who risked defaulting would also receive additional protection.
In Spain around three-quarters of the population are homeowners. They are among the most exposed to a rise in interest rates as around 70% of their more 4 million outstanding mortgage loans are tied to variable rates, according to data from Spain's mortgage association.
