New measures to offset the extra costs of living in the Balearic Islands

Automatic summary, not yet reviewed

1. The rule regulates the special regime of the Balearic Islands, which recognizes the extra costs caused by island life, and creates a joint State-region commission to monitor it.
2. On energy: planning must take island status into account, electric interconnections between islands and with the mainland will be promoted, and regulated electricity and gas prices will match mainland prices. Renewable energy and shore power for ships in ports will also be encouraged.
3. Residents of the Balearic Islands will get a 75 percent discount on boat and plane tickets between the islands and the rest of Spain; on trips between islands, 50 percent by boat and 75 percent by plane.
4. Compensations are set up to lower the cost of shipping goods by sea and air (at least 65 percent of the average freight cost for exports) and to fund maritime transport of waste between islands.
5. The Factor de Insularidad is created: an annual allocation in the State budget to fund infrastructure, energy, scholarships, tourism, research, waste management and heritage in the islands, with an annual report for oversight.
6. Law 30/1998 on the Special Regime of the Balearic Islands is repealed, and the rule takes effect the day after its publication in the Official State Gazette.

Who it affects

• Residents of the Balearic Islands: They get a 75 percent discount on boat and plane tickets to and from the mainland and between islands.
• Electricity and gas consumers in the islands: They pay the same regulated prices as on the mainland.
• Businesses in the islands: Shipping costs for their exports and imported raw materials go down.
• Spanish State and Balearic regional governments: They cooperate through joint commissions and manage the Factor de Insularidad.

Words worth knowing

Real decreto-ley (royal decree-law)

A rule with the force of law that the Government can pass urgently, without going through the full parliamentary process first.

Flete (freight)

The price paid to transport goods by ship or plane.

Obligación de servicio público (public service obligation)

A duty imposed on a transport company to offer certain routes, frequencies or minimum prices even if they are not profitable.

Factor de Insularidad (Island Factor)

Money the State budget allocates each year to offset the extra costs of living on islands.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries