Politics

Spanish government approves €168 million in aid for Ceuta

The Council of Ministers has approved a €168 million package for Ceuta. It includes grants, incentives for hiring and more flexible short-time working; Melilla also benefits from lower payroll costs.

The Spanish government has approved an aid package worth €168 million for the autonomous city of Ceuta . Government spokesperson Consejo de Ministros in La Moncloa outlined the measures on Tuesday following the meeting of the Elma Saiz . The package is intended to support the local economy and safeguard jobs; Prime Minister Pedro Sánchez chaired the meeting.

According to the government, the package includes direct aid for small and medium-sized businesses and self-employed people in Ceuta. It also offers incentives for new hires: employers in Ceuta and Melilla will receive a 75 per cent rebate on payroll costs for new employment contracts. The decision also provides for more flexible short-time working. Under the short-time working scheme (ERTE), companies can temporarily receive a full exemption from employer contributions. The government said this would provide liquidity and greater certainty for planning in the short term.

Saiz presented the decision as part of a broader support approach for the North African cities. The First Vice-President and Minister for the Economy, Carlos Cuerpo and the Minister for Territorial Policy and Democratic Memory, Ángel Víctor Torres, attended the press conference and highlighted the economic policy aim of stabilising investment and employment in the coming months. According to the government, specific payment schedules and eligibility requirements for direct grants will be set out in subsequent implementing regulations.

The short-time working contribution relief and new-hire bonuses are expected to have the most immediate effect. Outstanding questions include how the funds will be allocated across sectors, whether there will be per-company caps, and how central government will coordinate with the authorities in Ceuta. The government said the relevant ministries would clarify the details soon.

The figures for the package, rebate rates and contribution exemptions come from the government's account following the Council of Ministers and were reported by Spanish media on Tuesday. The decision is aimed at businesses and employees in Ceuta; the accompanying relief for new hires also applies to Melilla. Other economic indicators, such as sectoral allocation shares or evaluation criteria, were not initially available. Government members' forecasts for employment should be treated as statements of intent until the implementing measures are published.

Editor: Phillipe Schmidt-Araguin (Article created with AI assistance).

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