MADRID (dpa-AFX) – Spain’s left-wing coalition government has agreed on a relief package worth five billion euros to reduce the consequences of the Iran war. The most important measure is the reduction in VAT on petrol, diesel, natural gas and electricity from 21 to 10 percent. In addition, Prime Minister Pedro Sánchez announced a subsidy of 20 cents per liter of fuel for hauliers, farmers and fishermen. A total of 80 individual measures are planned, including for rents.
Petrol and diesel have become significantly more expensive in Spain since the start of the war, but they are below the price level in Germany. On Friday, regular gasoline cost an average of 1.71 euros and diesel 1.84 euros per liter.
The minority government’s relief measures have been divided into two decrees, which will come into force when they are published in the Official Gazette on Saturday, but still require parliamentary approval. This was considered likely with the tax relief decree.
The second decree, which, among other things, provides for the extension of expiring temporary rental contracts for low-income families as well as protection against termination for outstanding electricity or gas bills implemented by the left-wing alternative coalition partner Sumar, could fail due to resistance from the conservative and right-wing populist opposition./ro/DP/stk
