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Spain agreed on Friday to a \u20ac5 billion ($5.8 billion) relief package to cushion the economic impact of the Iran war, including a cut in value-added tax (VAT) on petrol, diesel, natural gas and electricity from 21% to 10%.<\/p>\n
Prime Minister Pedro S\u00e1nchez simultaneously announced a subsidy of 20 cents per litre on fuel for transport companies, farmers and fishing companies in a package of 80 separate measures including rent reductions.<\/p>\n
While transport fuel rose in price to \u20ac1.71 for petrol and \u20ac1.84 for diesel in Spain on Friday, this remains lower than prices in Europe further north.<\/p>\n
The measures were announced in two decrees that will go into force on publication in the government gazette on Saturday but still require parliamentary approval.<\/p>\n
Approval is considered likely for the decree on tax relief. However, the second decree could face difficulties.<\/p>\n
It includes, among other measures, a proposal from a left-wing coalition partner to extend expiring fixed-term rental contracts for low-income households and protections against eviction over unpaid electricity or gas bills.<\/p>\n
The measures may encounter resistance from the conservative and right-wing populist opposition, raising doubts about their passage.<\/p>\n<\/div>\n