Spain’s parliament has approved a €5 billion package aimed at cushioning the economic fallout from the Iran conflict, with a strong focus on cutting energy costs for households and key industries.
The measures, backed by 175 lawmakers with 33 voting against and 141 abstaining, are designed to counter a sharp rise in fuel and electricity prices triggered by instability in global energy markets.
Prime Minister Pedro Sánchez said the plan would help protect both vulnerable households and productive sectors of the economy. “These measures are designed to protect our productive sectors and the most vulnerable people,” he said when presenting the package.
Central to the plan are tax reductions on energy. The government will lower value-added tax on fuel and gas, a move expected to cut pump prices by up to €0.30 per litre, equivalent to around €20 per tank for the average driver.
The package also includes targeted support for sectors heavily reliant on fuel. Transport operators, farmers, ranchers and fishermen will receive a direct subsidy of €0.20 per litre, while electricity taxes will also be reduced to ease pressure on businesses and households.
Fuel prices in Spain have climbed significantly since the start of the conflict, rising from about €1 per litre in late February to roughly €1.80 per litre in recent days, reflecting broader disruptions linked to tensions around the Strait of Hormuz.
Sánchez has linked the domestic economic strain directly to the conflict, warning lawmakers that rising costs are already being felt by Spanish families.
Spain, one of the European Union’s faster-growing economies in recent years, is now facing the risk that sustained high energy prices could slow growth, with the government stepping in to limit the immediate impact while uncertainty persists.
via Euronews
