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Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure ES-2023-1/3043 – measures in Spain

Sectoral aid for fertiliser price increases

Ayudas sectoriales por la subida de precios de fertilizantes (Real Decreto-ley 20/2022)

Country Spain , applies nationwide
Time period Temporary, 01 January 2023 – 30 June 2023
Context War in Ukraine
Type Legislations or other statutory regulations
Category N/A
– Support for other basic items (e.g., food, housing, public transport, medicines)
Author Jessica Durán (IKEI) and Eurofound
Measure added 13 February 2023 (updated 07 November 2023)

Background information

The uncertainty linked to the duration of the war in Ukraine and the persistence of upward pressures on food, commodities and intermediate goods prices continues to affect the European and global economy as a whole. In this scenario, it is necessary to continue adopting measures to prevent a rebound in inflation while protecting the most affected and vulnerable groups.

With Royal Decree-Law 20/2022, a new package of measures is adopted, mobilising some €10 billion of public resources, to articulate the economic policy response to the war in Ukraine as of 1 January 2023, adapting it to the current context of inflation, concentrating its action on groups vulnerable to the increase in the price of food and other essential goods and on the sectors most affected by the rise in energy prices.

Content of measure

This is a state aid to farmers to compensate for the increased costs caused by the increase in the price of fertilisers. In particular, €300 million in direct aid has been approved to compensate for the increase in fertiliser prices in the agricultural sector, with the aim to prevent fertiliser costs, to the extent of the subsidy received, from being passed on, in whole or in part, to the selling prices of the goods produced.

The aid is intended for natural or legal persons who own agricultural holdings with permanent crops and areas of arable land.

It will be granted per hectare for areas of permanent crops and arable land (excluding fallow land and temporary grassland) which have been eligible for direct payments under the Common Agricultural Policy (CAP) in the 2022 marketing year, up to a maximum of 300 hectares, and a minimum payment of €200 is established.

Use of measure

The measure is estimated to benefit some 250,000 farmers.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

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 No involvement No involvement
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: N/A

Involvement

Social partners do not take part in the design and approval of these measures (they are not even consulted). The trade union UGT (Unión General de los Trabajadores) has called for "participation" in new reissues of these aid packages in order to contribute ideas that will benefit working people.

Views and reactions

In general, the trade unions CCOO (Comisiones Obreras) and UGT (Unión General de los Trabajadores) on Tuesday gave a positive assessment of the measures included in the new anti-crisis package (i.e. the Royal Decree-Law 20/2022). But no specific views on this particular measure have been found.

On the other hand, no particular opinion has been found from the employers’ side.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A1 Crop and animal production, hunting and related service activities
    • Occupation (ISCO level 2)
      Agricultural, forestry and fishery labourers

Sources

Citation

Eurofound (2023), Sectoral aid for fertiliser price increases, measure ES-2023-1/3043 (measures in Spain), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/ES-2023-1_3043.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.