Spain is one of the countries hit hardest by the outbreak of the Corona virus. To date, it has recorded close to 15,000 deaths related to Covid-19, one of the highest death rates per capita in the world.
In addition to the public health consequences, the virus has also had devastating effects on the economy. The unemployment rate, already high before the crisis, has skyrocketed, with the biggest monthly increase on jobless claims ever recorded.
To address the economic consequences, the Spanish government has now floated the idea of a basic income scheme. While the cash payments would not be universal but rather targeted at families and low-income groups, the government hopes to keep it in place permanently once established. As Economy Minister Nadia Calvino told Spanish channel La Sexta on Sunday, the measure, once rolled out, will remain after the pandemic is finally over.
The push comes amidst discussions about a unified fiscal response to the crisis by Eurozone countries. Specifically, Spain, together with eight other countries has asked for the issuance of so-called Corona bonds. This debt instrument would allow common borrowing by Eurozone countries and would enable countries such as Spain and Italy to benefit from the more solid government finances of member states like Germany and the Netherlands. The proposal has been rejected by countries in the North of the Eurozone.