29th Mar 2022 @ 9:00 am

The Spanish government yesterday announced various special measures to address the economic effects of the war in Ukraine and the current cost-of-living crisis, including a reduction of 20 cents on the price of a litre of fuel.

According to President Sánchez, the measures are “intended to help the most vulnerable families and sectors” and will last until the 30th June, at least.

Among the measures are following:

  • A subsidy of 20 cents on each litre of fuel for all citizens. This will be applied directly at the pump. The government will fund 15c of this, and oil companies 5c.
  • A reduction in electricity prices (yet to be specifiied).
  • 450 million euros of direct aid to freight and passenger transport companies. This fund will subsidise 1,250 Euros per truck, 900 per bus, 500 per van and 300 per taxi, VTC (private transfer vehicle) or ambulance.
  • The extension of employment flexibility measures such as ERTES (furlough schemes) and other incentives to prevent the sacking of employees.
  • Rent increases will be capped at 2% for three months.
  • The bono social electricity subsidy will be available to 600,000 more families, raising the number who qualify to 1.9 million.
  • The minimum living income for poorest households will be increased by 15%.

The measures are likely to be approved in Spain’s parliament today and most will apply from April 1st.

The opposition PP criticised the plan for not including a tax cut, and have accused the measures of being “patches”, while the government’s coalition partners in the PNV, (Basque National Party) have complained that they were not given sufficient notice of the plan.

Nevertheless, the plan is likely to be approved in Spain’s parliament later today.

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