(CTN News) – In an effort to make living costs more bearable if he is reelected as prime minister, Sanchez has pledged to extend several measures to help people.
Pedro Sanchez intends to make public transportation free next year for unemployed people and young people under 30 in his policies, Pedro Sanchez told lawmakers during his opening speech before a parliamentary vote to decide on his premiership bid, adding that he hoped to make the policy permanent.
It was at this point during Sanchez’s speech that a group of approximately 30 demonstrators gathered behind barricades set up by the police outside of the parliament building to stop protesters angry with Sanchez’s offer of amnesty in exchange for supporting his campaign for another term.
It is expected that the measures will be implemented on Jan. 1 of next year. A measure to assist disabled and senior citizens had already been approved by his caretaker government.
The reduced value-added tax on basic food products will continue until June 2024, according to Sanchez.
It was also promised by him that rent subsidies will be increased for young people and that pensions will continue to be revalued in line with official inflation figures.
Moreover, Sanchez indicated that as part of a set of measures designed to help vulnerable households cope with rising borrowing costs, his potential coalition government would be extending the threshold for mortgage relief support to 38,000 euros ($41,283) in an effort to help them cope with higher borrowing costs.
In addition to this, the measures include freezing the monthly mortgage payment for a period of one year and extending the repayment period to seven years.
As a result of an amended industry-wide code of good practice, Spain’s banks now have to provide mortgage support to households earning less than 25,200 euros per year that are vulnerable to foreclosure.
It is also intended to provide additional protection to middle-class families with an income of less than 29,400 euros who are at risk of defaulting.
Around three-quarters of the Spanish population owns their own home. The Spanish mortgage association said that around 70% of the country’s more than 4 million outstanding mortgage loans are tied to a variable rate, making them one of the most exposed to a rise in interest rates.