Background information

Russia's invasion of Ukraine at the end of February 2022 is having major consequences on all fronts, both humanitarian and economic. More than four months after the invasion, the persistence of the conflict continues to put pressure on the general price level, mainly through natural gas, fuel and food. The inflation rate has risen from close to zero in early 2021 to above 8% in June 2022, reflecting the direct impact of energy prices, and their pass-through to the prices of goods and services that use energy in their production processes. Rising electricity prices and their effect on inflation also affect households' disposable income, in particular that of the most vulnerable.

Content of measure

Royal Decree-Law 11/2022 (National Response Plan to the economic and social consequences of the war in Ukraine) approves a direct line of aid to low-income individuals to alleviate the detrimental effect on prices caused by the energy crisis resulting from the invasion of Ukraine.

Specifically, it is an aid of €200 for people on low incomes. The regulation states that wage earners, the self-employed and the unemployed registered at employment offices (whether or not they are receiving unemployment benefit or subsidy) can receive a one-off payment of €200.

To receive this assistance, beneficiaries must reside in households in which the sum of the income received by the cohabitants is less than €14,000 in 2021, and whose assets, excluding the main residence, do not exceed €43,196.4.

Beneficiaries must have legal and effective residence in Spain on the date of entry into force of the Royal Decree-Law, and must have had it continuously and uninterruptedly for at least one year.

Those who already receive the Minimum Living Income or receive pensions from the General Scheme and the Special Social Security Schemes are excluded from this assistance. The beneficiary himself/herself applies for this assistance online, during the month of July 2022.

Use of measure

It is estimated that this measure will benefit 2.7 million people.

Target groups

Workers	Businesses	Citizens
Employees in standard employment Self-employed Unemployed	Does not apply to businesses	People on low incomes

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners have not been involved in the design of this particular measure. In general, the Royal Decree-Law 11/2022 has been approved by the Spanish Government without the intervention of the trade unions. The trade union UGT (Union General de Trabajadores) claims that more far-reaching measures should be put in place, which should be designed and approved through social dialogue, and in particular with the trade unions, given their clear willingness to join efforts to overcome the crisis. The urgency of the situation demands a higher level of social dialogue and, in particular, the active participation of trade unions in the design and implementation of the measures.

Views and reactions

According to the trade unions UGT (Unión General de Trabajadores) and CCOO (Comisiones Obreras), in general terms, the National Plan of response to the economic and social consequences of the war in Ukraine (Royal Decree-Law 11/2022), is a set of positive initiatives, and goes in the right direction. However, they are insufficient given the scale of inflation. Therefore, although these measures will have a positive impact, more far-reaching action is needed. Specifically, the CCOO trade union points out that this €200 grant, although necessary, is insufficient in its amount and unambitious in the number of beneficiaries. Likewise, the trade union USO criticises that the €200 allowance leaves out pensioners and recipients of the Minimum Living Income with the same income levels. No specific reactions have been found from employers' organisations side.

Sources

• 25 June 2022: Royal Decree-Law 11/2022 (boe.es)