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24 May, 2024
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Spain: Youngsters to receive 20,000 euros upon turning 18

Spain proposes universal inheritance to tackle inequalities, funding through higher income taxation estimated at €10 billion


A universal inheritance is proposed by the Minister of Labor of Spain, Yolanda Diaz, as a means to address social inequalities. Under this framework, all young people living in Spain would receive 20,000 euros after they turn 18. The goal of the proposed plan is to ensure "equality of opportunities" regardless of the economic and family background of each young person.

Diaz and her party, Sumar, announced the proposal ahead of the elections on July 23. They estimate that the plan will cost 10 billion euros, which will be sourced from taxing high incomes.

Under the plan, young people would receive this money, which they can use to pursue higher education or start a business, from the age of 18 to 23, as noted by The Guardian. "It's about allowing young people to have a future and giving them the opportunity to study or start a business without relying on their surname or their family," Diaz emphasized.

As explained, the "universal inheritance" would be available to all young Spaniards, regardless of their economic situation, and would be funded through taxing those who earn over 3 million euros per year. According to the party's calculations, the measure would cost around 0.8% of Spain's GDP.

The minister, who grew up in a left-wing family, has mentioned that she couldn't fulfill her dream of becoming a labor inspector because she didn't have the money to spend five years studying. "I am not a labor inspector because I am the daughter of the working class, and I could never afford that. This is a redistributive measure that will allow the young people of our country to have a future, regardless of their surname," she emphasized.

However, Diaz's proposal has sparked reactions, with the Minister of Economy, Nadia Calvino, questioning its feasibility. "Anyone who proposes to give subsidies or grants without some kind of income restrictions or targets needs to explain how they will be financed because in the coming years, we will have to follow a responsible fiscal policy," she said.

A spokesperson for the conservative People's Party accused Sumar of having misplaced priorities. They argued that the government should focus on other issues in a country where "27% of the population faces the risk of social exclusion, where the unemployment rate is one of the highest in Europe, where families struggle to make ends meet, and where self-employed individuals strive to get by."

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