Spain’s Socialist-led government plans to launch a monthly basic income scheme for the most vulnerable households hit by the coronavirus crisis.
The idea of giving citizens money with no strings attached every month was tested in Finland in 2017 but it only lasted two years after researchers said the measure improved happiness, but it did not boost employment.
During this pandemic to support the citizens with lower income involving the special needs Spain could be about to change that as the country battles the economic blow brought on by coronavirus. The aim is to reach at least 100,000 households initially. If Spain succeeds with the plan, it would be the first European country to do so over an extended time frame. As it planned each adult under the scheme will get a monthly payment of at least €462. Depending on needs. The spanish scheme will prioritize families including single-parent households.
As Social Security Minister Jose Luis Escrivá said it would act as “a permanent safety net for the most vulnerable”.This plan will cost the government between €3bn and €3.5bn annually.
He said the only way forward is to implement a universal basic income scheme and once it takes off, he believes it will become permanent policy as people realize the benefits, namely health improvements. “unlucky” finding the capital to fund such a scheme amid the country’s lack of fiscal space may be difficult.