Prime Minister Pedro Sanchez said the Spanish government had approved a package of emergency economic measures worth more than 9 billion euros ($9.5 billion) to overcome the economic downturn from the invasion of Ukraine. of Russia.
“This war and its economic and social consequences have created an extraordinary instability for the European and international economy and of course the Spanish economy,” Sanchez said. with reporters.
“We are therefore supporting this effect with the tools we have and a fair and equitable share of the economic and social costs of the war,” he added.
The measures include cutting electricity tax from 10% to 5%, reducing monthly travel costs and a one-time payment of 200 euros ($211) for those earning less than 14,000 euros ($14,756) a years and have not received a subsidy.
A series of measures announced earlier, such as a 20 cent reduction in the price of petrol at the pump and a 15% increase for beneficiaries, will be extended.
The government is also in the process of designing a tax aimed at the “extraordinary profits” made by energy companies since Russia’s entry into the war in Ukraine has sent prices soaring, said socialist Sanchez. head of a coalition government said.
“It’s an initiative that suits public opinion in our country,” the Prime Minister said.
His announcement comes less than a week after the opposition Popular Party won an unprecedented majority government in Andalusia, southern Spain. Some analysts have linked the loss of the Socialists in an area that was once the party’s stronghold to growing concerns about rising inflation and the cost of living.