Overview
- Prime Minister Pedro Sánchez announced 80 measures totaling €5 billion after an extraordinary cabinet meeting in response to Middle East war price pressures.
- VAT on gas and fuels will be reduced, with officials estimating pump prices could fall by up to €0.30 per litre.
- Electricity taxes will drop through suspension of the power production levy and a cut in electricity VAT from 21% to 10%.
- Transporters, farmers, livestock breeders and fishers will receive a €0.20‑per‑litre fuel subsidy, alongside equivalent aid for fertilizer purchases.
- Most measures take effect upon publication in the Official State Gazette, while the rent freeze faces tough negotiations with Sumar and still needs Parliament; Sánchez touts the package as the EU’s largest social‑economic shield.