In order to counteract the price increases caused by the war conflict between Russia and Ukraine, the Government approved on March 29, 2022 a set of anti-crisis measures known as the "War Response Shock Plan".

On June 27, the Council of Ministers met to determine which measures of the Emergency War Response Plan would be extended or eliminated. First Vice-President Nadia Calviño pointed out that, although the macroeconomic situation is favorable and the country has been coping better than other European countries in this complex international context, the war and rate increases are still having an effect on households. Calviño mentioned that an analysis is being carried out to determine which measures will be maintained and which will be definitively eliminated.

These measures, which can only be extended by means of another decree law approved by the Council of Ministers, have a deadline of June 30 and include limits on the price of rent, aid for public transport, VAT reduction on foodstuffs and fuel subsidies for professionals.

The following are the measures of the Emergency Response Plan that the Government has decided to eliminate after negotiations:

1. Elimination of the cap on rent increases at 2%. This measure, which limited rent increases to 2%, has been eliminated. However, it will be compensated by the new Housing Law that has already been approved.

2. Elimination of the automatic extension of rental contracts. The Government has eliminated this measure that automatically extended all rental contracts that expired within six months of its approval, without price increases.

What anti-crisis aid is being extended?

The Government has decided to maintain the following measures in effect until December 31:

1. Prohibition of evictions without housing alternatives. The extension of this measure has been approved to protect the most vulnerable people.

Reduction of VAT on food, which will remain at 0% for basic necessities and 5% for oils and pastas.

3. Continuation of aid to public transportation, by means of ticket subsidies.

4. Maintenance of the bonus of 10 cents per liter of fuel for professional road transport until September 30. From then until the end of the year, the bonus will be reduced to 5 cents.

In addition to the extension of these measures, the Government will implement a 15% deduction in Personal Income Tax (IRPF) for those who purchase electric vehicles until December 31, 2025.

Finally, the Executive took the opportunity to approve some pending measures, giving the green light to the legal framework of a new line of ICO guarantees for the purchase of first homes. This guarantee will cover between 20% and

and 25% of the mortgage value, with a total amount of up to 2,500 million euros. The objective of this aid, aimed at young people under 35 years of age and families with dependent minors, is to facilitate the acquisition of approximately 50,000 properties.

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