Construction work could be suspended. | Pilar Pellicer


The regional government is proposing to Madrid that there be a suspension of construction work and a moratorium on the paying of rents (for rented residential accommodation).

The government says that it has been in discussion with the building sector - business associations and unions - regarding a suspension of activity. This would be in order to ensure maximum safety for workers. The government believes that this would be an appropriate measure, but it is one for which the Spanish government has to give approval.

With regard to rents, the Balearic government is of the view that as there has been agreement for the suspension of mortgage payments by those affected by the crisis, similar measures should also apply to those paying rents. Compensatory measures should be available for both landlords and tenants in the most vulnerable situations.

In addition, the regional government is proposing that there should be automatic extensions to rental agreements for as long as the "exceptional" situation lasts and that tax incentive programmes are established for homeowners willing to rent out at affordable prices, with specific discounts for those who, with current contracts, reduce rents to these affordable levels or, if they are able to, waive monthly payments.

Furthermore, there are proposals regarding subsidised credit mechanisms and new mechanisms for rental assistance that are more agile than ones currently envisaged under the state housing plan.

These various proposals were put forward on Tuesday in meetings involving the Balearics vice-president, Juan Pedro Yllanes, the regional housing minister, Marc Pons, and the Spanish government's ministers for the urban agenda and industry - José Luis Ábalos and Reyes Maroto.

A moratorium for rents is already being considered by the Spanish government. It is expected that an announcement will be made next week.