Spanish Prime Minister Pedro Sanchez today announced a series of 80 measures, totalling €5 billion, aimed at tackling the economic impact of the war in the Middle East, promising in particular a “drastic reduction” in energy taxation.
“Emergencies require emergency responses,” the socialist prime minister said after an emergency cabinet meeting.
Among the measures announced to support the most vulnerable households is a reduction in VAT on gas and fuel, which should allow a reduction in prices at the pumps of up to 30 euro cents per litre, Sanchez said. The reduction of taxes on electricity will reach up to 60%.
The measures will offer cost savings of 200 million euros for energy-intensive industries.
In addition, Sanchez announced the adoption of a decree providing for a “temporary freeze” on rents in the country. This is a measure “similar to those we have implemented in previous crises,” the prime minister said, referring to “the energy crisis caused by Putin’s war in Ukraine.”
These measures must be approved by parliament.
