Spain Helps the Country’s Poorest with Cash – a Model for Others?

Spain, long lacking a financial safety net, has become the first country in southern Europe to approve an income support program aimed at helping those in need during the COVID-19 pandemic.

The scheme would provide 2.5 million citizens suffering from poverty with a minimum monthly income of around half the minimum wage of 1,108 euros ($1,230), following months of a lockdown that has shot up unemployment numbers and reinforced a debate on universal basic income in the region.

“It could be really trend-setting for southern Europe if for the first time we are to maintain a more consistent approach to income assistance,” says basic income advocate Louise Haagh, a politics professor at Britain’s York University.

The Spanish scheme is not yet considered a universal basic income as it is means-tested and temporary – the scheme prioritizes families with children, helping those who have traditionally lacked financial protection. Luis Ayala Canon, economics professor at Rey Juan Carlos University in Madrid, highlights that “guaranteeing an income for these families, even if it is minimal, should help to alleviate the pressure on expenses”.