Spain’s government has agreed to pay 500m euros ($551.35million) in aid to the transport sector Monday. This was to help truck drivers weather rising fuel prices that have prompted some to strike and caused further chaos in supply chains.
After meeting with the National Road Transport Committee, Raquel Sanchez, Transport Minister, stated that he would introduce a subsidy to the price of professional diesel in order to make this a more effective and real measure.
The measure, which she said was in line to similar measures taken in France and Portugal, would be in effect starting April 1. The government won’t reduce VAT (value added tax) on fuel.
This plan was developed following a consultation of the European Commission on a proposal for temporary state aid to support the EU’s economy in the context global inflation that has been escalating.
The EU stated that such support could come in many forms, including loans, guarantees and subsidised loans, as well as partial grants to compensate companies for increases in energy prices.
A truck driver and small truck owner group, known as the Platform for the Defence of Transport went on strike last Monday in protest at record diesel prices. Some protests turned violent.
Jose Hernandez, a Platform representative and a truck driver who lost their job, said to Reuters that “Diesel” was the straw that broke the camel’s back. Because the fees earned by his company didn’t cover expenses, he decided to close his business.
Although the strike affects a small number of drivers, it has caused massive traffic jams throughout the country. Some factories had to stop production because they couldn’t guarantee delivery on time.
Juan Vieites (secretary general of the national association of fish producers) stated that the strike had paralysed the country with the worst effects being in the coastal regions of Galicia and Asturias.
After striking transport workers attacked a truck trying to leave Vigo, Vieites demanded police intervention.
He stated that Spain must act or face a serious problem.
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