Spain is rolling out a €5 billion economic stimulus package in response to rising energy prices
Spanish Prime Minister Pedro Sánchez has unveiled a €5 billion economic relief package aimed at mitigating the economic impact of rising prices amid the war in the Middle East.
He announced this after an emergency cabinet meeting, El País reports.
According to Sánchez, the plan includes 80 measures and will take effect on March 21. The funds will be directed toward supporting citizens, small and medium-sized businesses, and industry.
Key measures include:
— reducing the VAT on fuel from 21% to 10%;
— freezing the maximum price of butane and propane;
— tax breaks on electricity and gas;
— direct aid of €0.20 per liter of fuel for transporters, farmers, livestock breeders, and fishermen.
The government is also proposing a temporary freeze on rental prices, though this initiative still requires parliamentary approval.
Sánchez criticized the protracted conflict in the Middle East and stated that he is outraged by decisions that are exacerbating the global situation.
As a reminder, record-breaking oil price hikes: what’s happening, who stands to gain, and what to expect.
Additionally, oil prices could rise to $200 per barrel due to geopolitical risks.
