Spanish Prime Minister Pedro Sanchez has unveiled a €5 billion government anti-crisis plan aimed at mitigating the effects of global price increases due to the war in the Middle East. It includes a reduction in VAT on energy and aid for the country's population.
He made this statement after an extraordinary government meeting, El Pais reports.
The Prime Minister said he was “very angry about the situation the world is experiencing and the situation that certain decisions and certain governments are leading us to.”
According to Sanchez, Spain is “better prepared than almost any other country in the region” to deal with the economic and energy crisis resulting from the escalation around Iran.
He noted that the anti-crisis plan consists of 80 measures that will enter into force on March 21 and mobilize 5 billion euros to protect citizens, help small and medium-sized enterprises and industry.
The Prime Minister estimates that this plan will benefit 20 million households and three million businesses in Spain.
Additionally, the government will reduce the VAT on fuel from 21% to 10% and freeze the maximum price for butane and propane. The tax cuts will also apply to electricity and gas.
In addition, Sanchez announced direct financial assistance of 0.2 euros per liter of fuel to all carriers, farmers, livestock farmers and fishermen.
Another initiative by the Spanish government involves a temporary freeze on rental prices. This bill does not have the support of all political groups in parliament, so its discussion will continue.
What is known about attempts to unblock the Strait of Hormuz?
On March 14, US President Donald Trump called on a number of European and Asian countries to send warships to protect shipping in the Strait of Hormuz, which is effectively blocked due to the threat of attacks from Iran.
On March 16, it became known that Spain, Italy, Japan, the United Kingdom, Germany, and the European Union had refused to provide ships to unblock the Strait of Hormuz. The next day, France also refused.
Trump responded by saying that the US never needed help from NATO partners. The US military dropped bombs on Iranian missile positions in the Strait of Hormuz on the night of March 18.