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Free way to 450 million in aid to the transport sector in Spain

The European Commission (EC) gave the green light on Thursday to the program of 450 million euros of direct aid to the transport sector, both for goods and passengers, agreed between the Government of Spain and the National Committee for Road Transport (CNTC) at the end of March, the institution reported in a statement.
This support program follows the guidelines of the Temporary Framework for State Aid adopted by Brussels with the aim of mitigating the consequences of the invasion of Ukraine and which allows the granting of public aid to the business fabric that would be prohibited under normal circumstances.

As reported by the Government on March 25 after 12 hours of negotiation with the CNTC, the amount will be 1,250 euros per truck, 950 per bus, 500 per van and 300 per light vehicle (taxis, VTC and ambulances), with a limit of 400,000 euros maximum per company.

Precisely this limit is part of the requirements established in the temporary framework of the European Commission, as well as the requirement that aid cannot be granted later than December 31, 2022.

The Competition services of the Community Executive concluded in their analysis that it is a “necessary, adequate and proportionate” program to tackle a “serious distortion” of the economy of a Member State, for which they gave the green light to the plan.

The agreement after 12 hours of negotiation between the Government and the transport associations that are part of that committee specifies that the Executive’s aid to the sector will amount to more than 1,050 million euros (about 1,100 million dollars).

The other pillar of the pact is the more than 600 million euros destined to grant a bonus of 15 cents per liter of fuel to professionals, to which are added another 5 cents -at least- contributed by the oil companies until June 30 .

The agreement also included extending the maturities of public loans to the sector and doubling the budget for aid for leaving the carrier profession (from 10 to 20 million euros), as well as legal measures to prevent abuse of subcontracting and prevent their services from being paid at a price lower than their costs.

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