Automatically translated from Basque, translation may contain errors. More information here. Elhuyarren itzultzaile automatikoaren logoa

Will the EUR 300 per month to be distributed by the government decrease as much as emancipation?

  • Persons registered in Álava, Bizkaia or Gipuzkoa from 25 to 29 years old can apply for the Emancipation grant. According to economist Niko Cuenca, it will help them in the moment, but it is nothing more than a “patch”.

21 February 2024 - 07:30
EAEko gazteen %71 30 eta 34 urte artean emantzipatzen da. Argazkian, Donostiako Zubieta kalea.

The Basque Government wants to reduce the age of emancipation of Basque youth from 30 to 28, since today the majority of the young people of Álava, Bizkaia and Gipuzkoa (71.5%) are emancipated between 30 and 34 years. In order to amend it, the government announced in December the Emantzipa grant, on 20 February the application deadline is opened and on 29 November it is the last day to apply.

To alleviate housing costs, young people aged 25-29 will receive EUR 300 per month for up to two years. Economist Niko Cuenca explained in the Basque Country that “it is palliative and helpful” for people who access the aid, but warns that it is a “patch”. Remember that the problem lies in the supply and that after the Spanish Housing Law of 2023 many owners have decided to allocate the homes to tourism instead of to rent, to avoid the conditions.

What if after two years young people cannot afford to rent? How will the Emantzipa programme affect housing prices? Cuenca clarifies that owners are most likely to increase rental or sale prices, knowing that three young people on the same floor receive 300 euros per month, among others: “Seeing how the market is, prices rise smoothly.”

Maximum income EUR 28000

The conditions for applying for the grant are: to have a contract for renting or acquiring housing; to be registered in a locality of the three territories one year prior to the date of application, or at least for three consecutive years in the last ten years; to have an annual income between 3,000 and 28,000 euros. For young people sharing housing, the maximum number of beneficiaries will be three.

State aid for higher indebtedness

The Spanish Government approved in February the granting of financial aid for the purchase of the first home to young people under 35 through the Official Credit Institute (ICO). These are ten-year loans for the payment of income, among others. Niko Cuenca has shown the other side of the coin in the Basque Country: “Higher lending results in higher indebtedness for the individual. The loan is for ten years and then what?” It says that change must be applied to owners and to the market.

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