The President of Spain, Pedro Sánchez, presented the measures that allow establishing the bases for a decree on the national plan to deal with the economic and social consequences of the war between Russia and Ukraine, which will be discussed in the Council of Ministers.
Within the justification for the plan, the Spanish president highlighted the “economic and social consequences” in Spain, among which are “the rise in energy prices, shooting up costs for households and companies” and the rise in the price of “raw materials exported by Russia and Ukraine”.
The package of measures amounts to some 6,000 million euros in direct aid and tax rebates, as well as some 10,000 million more in loans.
The most remarkable measures refer to:
- The extension of the tax reduction on the electricity bill stands out: which establishes VAT at 10% for small consumers, the special tax on electricity at 0.5 % and the suspension of the tax to electricity generation.
- Companies will be able to access ICO credits for 10,000 million that will allow them to obtain the necessary liquidity to face the costs of fuel and energy.
- For the agricultural and livestock sector, the plan includes direct aid in the order of 362 million to mitigate the effects of the war and the increase in the price of raw materials. As well as 68 million to support the fishing and aquaculture sector to alleviate the increase in fuel prices.
- While the industry for being a large consumer of energy will be compensated in taxes, in addition to a package equivalent to 500 million euros intended for direct aid to the sector.
Measures for the transport sector and cybersecurity
For the transport sector, Sánchez announced a budget of more than 1,050 million euros and half will be distributed in bonuses of 15 cents per liter of fuel to professionals at the wheel, which will be added to the 5 cents, minimum, that the oil companies contribute .
It is also planned to grant another 450 million euros in direct aid to transporters of goods and passengers: the amount will be 1,250 euros per truck, 950 per bus, 500 per van and 300 per light vehicle (taxis, VTC and ambulances). But it is established as a limit of 400,000 euros per company.
The Government will establish a “cap” for the price of gas that will be used in the “exceptional production of electricity”, which will not impact incentives “for renewables, nor will it distort the market and will allow prices of electricity to be lowered significantly” immediately.
Sánchez also referred to the new remuneration regime for renewables (RECOVE) that establishes a reduction of 1,800 million and that will reduce the final price of electricity “which will relieve citizens and industries.”
On the other hand, the president reported that the new national cybersecurity plan will have more than 1 billion investment. It is planned to build a cybersecurity center for public institutions, in addition to the “plan to strengthen 5G networks, for essential services such as transportation, energy and medicine.”