The Spanish Prime Minister, Pedro Sánchez, has unveiled a 9 billion Euro emergency package of financial measures to try to temper the continuing economic fallout from Russia´s invasion of Ukraine.
“This war, and its economic and social consequences, have produced an extraordinary uncertainty when it comes to the European and international economy and, of course, the Spanish one,” Sánchez told reporters.
“Consequently, we are cushioning this effect with the instruments that we have and sharing in a fair, equitable way the economic and social costs of the war,” he added.
El PG, @sanchezcastejon, comparece en rueda de prensa tras el #CMin extraordinario para explicar el nuevo paquete de medidas acordado para paliar los efectos de la crisis energética ocasionada por la guerra en Ucrania. https://t.co/3GJFakaBnn
— La Moncloa (@desdelamoncloa) June 25, 2022
The measures include a reduction from 10% to 5% in VAT on electricity, a reduction in the cost of monthly public transport passes and a one-time payment of 200 euros for self-employed and unemployed people who earn less than 14,000 euros a year and are not already receiving benefits.
The Prime Minister also announced that pensions and other state benefits will rise by 15%.
A series of previously announced measures, such as a 20-cent reduction on petrol prices at the pump will be extended until the end of the year.
The cost of the extention on petrol subsisdy alone is expected to be in the region of 4 billion Euros.
The government is also in the process of designing a tax aimed at the “extraordinary profits” on the energy sector which has seen prices rise and profits soar to the detriment of the consumer.
“It’s an initiative that is in tune with public opinion in our country,” the prime minister said.
The measures will help consumers deal with rising inflation, which hit a decades long high of 8.7% in May, and is expected to rise further this year.