Spanish Prime Minister Pedro Sanchez announced Friday a sweeping package worth five billion euros ($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. The government will also slash electricity taxes by 60 percent, suspend a production tax and reduce the value-added tax on electricity to 10 percent from 21 percent. Additional support includes a direct subsidy of 0.20 euros per litre of fuel for transport operators, farmers, ranchers and fishermen, along with equivalent aid for fertiliser purchases. “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,” Sanchez said.

Source: Punch March 20, 2026 16:34 UTC