Neighboring Spain is making an effort to lower the prices charged on the cost of living, so that the war in the Middle East impacts families’ lives less than initially anticipated. All in all, a total of 80 measures, some focusing on the immediate effect, others with a medium and long term perspective. The total amounts to a loss of five billion euros from the coffers of the Spanish State.
The various extraordinary and temporary measures were approved by the Spanish Government, in the Council of Ministers. Among them there are reductions in VAT on fuels (from 21% to 10%) and the tax on hydrocarbons, such as methane and butane (to 10%)for which a maximum price is defined.
Spanish Prime Minister Pedro Sánchez foresees “an effective reduction of up to 30 cents per liter” in fuels. In practice, it means “about 20 euros in savings” to fill up a car, on average.
At the same time, starts to limit the profits of energy companies, in line with the demand of the left-wing Sumar coalition. Support is added to sectors penalized by the rise in fuel prices, such as agriculture, fishing and transport.
At the same time, the executive of our brothers wants to accelerate the energy transition. It therefore approved a set of structural measures. It is the case that a cut in taxes associated with the installation of solar panels, heat pumps and electric car charging points. Additionally, there is the speeding up of installation of infrastructure linked to renewable energy.
It further determines that companies benefiting from the measures are prevented from carrying out layoffs. According to the Spanish head of government, “this war is already affecting citizens’ pockets”he stressed.
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