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The government will eliminate state aid for transport except for young people and retirees

On December 31, the government will end the list of state bonuses for public transport that it had promoted in 2022, due to the war in Ukraine. Executive sources clearly indicate that elEconomista.es that there will be no further extension of this aid in terms of scope to the entire population. However, Two very specific groups – young people and retirees – will continue to benefit from the reductionsor even completely free use of public transport in certain cases. La Moncloa will guarantee this in the next state budgets or, if these are not approved, by a royal decree-law. On December 27, President Pedro Sánchez decreed the extension of this aid which guarantees reductions of at least 50% on the price of passes and multi-trip tickets, in addition to free Renfe passes or a 50% reduction on Before. rail services for regular passengers. Today the situation is very different.

La Moncloa considers that maintaining the measure beyond December 31 will generate an “unaffordable” impact on the accounts –estimated at 2,000 million euros from 2022 – at a time when Spain must implement greater spending controls according to the guidelines set by European rules. It is worth remembering that Brussels has been demanding for months that Spain withdraw the recovery measures approved to respond to the price crisis. The sources consulted justify the end of aid by the de-escalation that inflation has experienced in recent months, which has led to the withdrawal of other anti-crisis measures, such as the gradual reduction of VAT on food products. The CPI fell to 1.5% in September, according to data published last Friday by the INE.

The government’s intention is to redefine the standard, directing it towards those under 30 and retirees, through an element of the 2025 draft budget, which the PSOE has already started to negotiate with Sumar. Yolanda Díaz’s team, however, is betting on a total extension of the aid, which is opposed by María Jesús Montero and Óscar Puente. Indeed, the Minister of Transport has publicly shown himself to be in favor of the end of free subscriptions, which he attributes – in part – to the increase in rail traffic and the collapse from which many of the main stations are suffering.

If Sánchez does not obtain the necessary assistance to process the Accounts, he reserves a plan B. He will promote the measure through a royal decree-lawwith the hope that it will obtain the support of the majority of parliamentary groups. The surgical change that the government is preparing responds to the advice of a good part of the organizations and analytical entities, which have continued to recommend that Sánchez reorient his relief measures for vulnerable groups, instead of following up on initiatives universal.

Puente is expected to announce the partial extension of the cuts soon. The CCAA has continued to put pressure on the minister to reveal the destination of the aid as quickly as possible. It should be remembered that the total cost of the reductions is distributed between the State – 30% – and the autonomous communities – 20% – and regional governments must therefore include in their budgets the estimated impact that the modification of the measure will require.

One of the last to ask for explanations was the Community of Madrid. “We are in October and the minister has not yet communicated to the autonomous communities, which are those which have the powers in matters of transport, what he is going to do, if he is going to extend this reduction or if he will eliminate it, “said Ayuso’s Minister of Transport, Miguel Ángel García, on Wednesday. The Valencian Generalitat also urged Puente to clarify what will happen to the aid mechanism once its extension expires. Its head of Transport, the popular Vicente Martínez Mus, asked by letter to the State to confirm whether it would stop paying 30% of ticket prices.

Many regions will decide whether or not to maintain their share of the bonus beyond 2024, once Moncloa has revealed its intentions. The extension of the measure to young people and retirees will have a much smaller impact, both on the accounts of the central government and on the accounts of the regions.

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Katy Sprout
Katy Sprout
I am a professional writer specializing in creating compelling and informative blog content.
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