Spain to spend €5 bn to ease war fallout

Spanish Prime Minister Pedro Sanchez announced on Friday a sweeping package worth €five billion ($5.8 billion) aimed at cushioning the economic impact of the Middle East war, including a 'drastic reduction' in energy-related taxes.
Speaking after an emergency cabinet meeting, the Socialist leader said the 80-measure package was necessary to shield households and key sectors from surging costs.
'Extraordinary situations require extraordinary responses', Sanchez said, calling it the 'largest social and economic shield' being implemented in the European Union.
'Clearly, these measures will not prevent the effects of this illegal war from reaching Spain, but they will at least mitigate their impact and make them somewhat more bearable'.
The package, set to take effect on Saturday following publication in the official gazette, includes cuts to value-added tax on gas and fuel expected to reduce pump prices by as much as €30 cents per litre, or roughly €20 per tank for the average car.
Sanchez also said the government would cap the maximum price of butane and propane.
The government will also slash electricity taxes by 60 per cent, suspend a production tax and reduce the value-added tax on electricity to 10 per cent from 21 per cent.
Additional support includes a direct subsidy of €0.20 per litre of fuel for transport operators, farmers, ranchers and fishermen, along with equivalent aid for fertiliser purchases.
Sanchez also announced a decree introducing a 'temporary freeze' on rents in Spain, which like other European nations is grappling with a housing crisis as rents skyrocket.
This measure still requires approval from parliament, where the government lacks a majority. — AFP