Menorca | English pages

Government to stop 426 euro payment for the unemployed

The benefit has been the only lifeline for many thousands of jobless people who have exhausted their entitlement to other unemployment subsidies

Food Banks. The last resource available to many people

C.M.W.Maó13/12/10 0:00

The State Government has announced that the 426-euro payment (technically known as the PRODI), paid to unemployed people who have exhausted their entitlement to either of the unemployment benefits ('subsidio' or 'paro') is to be stopped in February. The payment has been a lifeline for many thousands of people who have no other form of income and the prospect of its withdrawal is causing concern amongst trade unions and social welfare groups.

Although there is no official estimate of the impact that this measure will have on Menorca, some sources say that more than 1,000 people could be affected and left with no income whatsoever. With the number of people out of work reaching an all-time high of over 7,000, the unions are warning that the situation could become very difficult over the next few months and are critical of a move that will hit those suffering most from the crisis the hardest. With the loss of their only income, those people currently drawing the 'PRODI' will be left almost entirely dependent on charity for their existence.

One possible form of assistance could be the RMI (renta mínima de inserción - minimum insertion income) offered jointly by the Island Council of Menorca and the Balearic Government Last year there were 297 people receiving this aid with some 620 citizens benefiting indirectly.

The RMI budget for this year was 685,657 and, at present, the Island Council has no plans to increase the amount earmarked for this payment next year, despite the fact that there will possibly be more people applying for the aid after February.

The unions feel that the administration, and especially the Town Councils, will be very restricted next year when it comes to meeting social needs, as the State Government has banned any Councils whose accounts are not in a healthy position from taking out further loans and thus increasing their level of indebtedness.