Report backs gas subsidy cuts but warns of impact in Córdoba

An IERAL report backed the national government's elimination of the expanded Zona Fría subsidy scheme. La Mediterránea called for gradual implementation to avoid sharp tariff hikes. More than 700,000 households in Córdoba could lose part of the benefit.

The report prepared by IERAL, linked to Fundación Mediterránea, supported the government's decision to eliminate the expanded gas subsidy scheme in the Zona Fría area.

The organization recommended gradual implementation of the changes to minimize the effect on user bills.

According to the document, more than 700,000 households in Córdoba could see their current assistance reduced if the measure is implemented.

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Politicians from Partido de la Gente at a press conference withdrawing support for a reform bill due to unfulfilled promises on middle-class benefits.
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PDG withdraws support for Kast megareform after broken promises

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The Partido de la Gente announced on Wednesday that its agreement with the government to back the megareform bill has collapsed, accusing the administration of failing to include middle-class benefits such as VAT refunds on medicines and diapers. The decision marks a sharp turn after weeks of talks and internal divisions within the party.

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The Ministry for Ecological Transition will approve two extraordinary credits worth 220 and 450 million euros to offset the 80% cut in fees for electrointensive industry and the suspension of the 7% IVPEE tax in 2026. These measures are part of the Real Decreto Ley approved by the Council of Ministers on Friday, published in the BOE on Saturday, and effective from Sunday.

In response to the government's recent announcement of significant fuel price increases, leaders from Chile's three major municipal associations met Tuesday at La Moneda to voice criticisms and demand a social agenda. Meanwhile, 26 opposition mayors issued a strong statement highlighting impacts on residents, as the hikes of $370 for gasoline and $580 for diesel take effect Thursday.

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Chile's Consejo Fiscal Autónomo (CFA) issued a critical report on President José Antonio Kast's megarreforma, warning of persistent fiscal deficits and nine direct risks to public finances. President Paula Benavides stressed that the impact hinges on realizing projected economic growth. The government said it will review the report.

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Sumar's Lara Hernández defended the party's boycott tactic at the Council of Ministers, which led to the approval of a housing decree extending rental contracts and capping increases at 2%, published amid the Iran war's energy shock. Junts vowed opposition, calling it harmful to small owners.

 

 

 

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