Spain announces emergency measures to counter impact of Mideast conflict

Spanish Prime Minister Pedro Sanchez on Friday announced a series of urgent measures to bolster the country against the economic effects of the ongoing conflict in the Middle East and protect consumers from rising prices.



The measures, worth over 5 billion euros (5.75 billion U.S. dollars), were laid out in two decrees. The first was aimed at supporting businesses, while the second focused on curbing rising housing and rental costs.



Speaking to the press, Sanchez admitted that the measures "won't prevent the effects of this illegal war from reaching Spain," but promised that "at least they will make them less corrosive and somewhat more bearable."



Among the measures approved in an emergency cabinet meeting were a reduction of VAT from 21 percent to 10 percent on automotive fuels, electricity, and natural gas, as well as a reduction on special tax on hydrocarbons.



The Spanish government will also temporarily suspend its tax on electricity generation, while introducing a 15 percent personal income tax deduction for the purchase of electric and plug-in vehicles, along with additional tax deductions to support energy efficiency improvements, self-consumption and heat pumps, according to the measures.