Spain Unveils New Aid Package Worth $10.6Bln to Help Cover Basic Expenses

MADRID (Sputnik) - The Spanish government presented on Tuesday a new aid package worth 10 billion euros ($10.6 billion) that Prime Minister Pedro Sanchez said would help those vulnerable navigate the cost of living crisis.

"We have already allocated more than 35 billion euros and are adding another 10 billion as part of this aid package… A total 45 billion has been disbursed to protect the middle and working classes in the face of a rise in the cost of living, energy and food," he said.

The newly adopted assistance program includes scrapping the value-added tax on such staple foods as bread and milk. VAT on oil and pasta will be reduced from 10% to 5%.

Electricity and gas rebates will be extended for another six months, while rent increases will be capped at 2% until the end of the year. Landlords will also be prohibited from evicting vulnerable families.

Households earning less than 27,000 euros a year will be eligible for 200 euros in assistance funding next year. The government estimates that some 4.2 million families will benefit from this one-off payment from January 1.