Spain's government Friday agreed to extend the life of a 400-euro ($500) monthly payment for jobless people whose unemployment benefits come to an end. The aid, which had been due to expire August 15, will be extended for six months - crucial in a nation with a 24.63-percent jobless rate, the highest in the industrialised world.
The aim is that "people without means won't find themselves without state support," Deputy Prime Minister Soraya Saenz de Santamaria told a news conference after a cabinet meeting. Regular unemployment benefits last a maximum of two years in Spain depending on how long a worker has made social security contributions. The benefit will be raised to 450 euros for recipients who have a dependant spouse or partner and at least two children, the deputy premier said.
Those living with a parent or grandparent earning at least 481 euros a month would be excluded from the benefit, however. The payment is a lifeline to many people, with official data showing 1.74 million households with no member in work. Spain said it would approve on April 31 a new reform aimed at improving supervision of the banking sector, in line with a deal struck with the euro zone in return for a 100-billion-rescue loan for crisis-hit banks.