Spain expected to adopt emergency tax cuts to counter impact of US-Israel war on Iran – Europe live | Europe
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Morning open: Spain makes first move to help energy prices
Spain will this morning propose a series of emergency tax cuts to counter the economic effects of the Iran war.
Measures – It will be presented at a press conference at 11:00 local time – It is expected to include a reduction in the VAT tax on fuels from 21% to 10%, according to initial media reports, as well as other changes, including hydrocarbon and electricity taxes, aimed at helping with rising energy prices.
Reuters says that changing the hydrocarbon tax alone would likely lead to a sudden drop in diesel and gasoline prices by between 0.30 and 0.40 euros.
Prime Minister of Spain Pedro SánchezHe has been one of the leading European voices criticizing the US and Israeli attack on Iran and has repeatedly sounded the alarm about its possible economic impact on Europe.
Ministers said earlier this week: The measures will also include aid to the economic sectors most exposed to the crisis. But the country’s high renewable energy production means its economy is less exposed to the impact of war-induced oil price increases, Reuters added.
But now other countries may follow him as president of the European Commission. Ursula von der Leyen, Last night it signaled its intention to move in this area.
Speaking after a meeting of the European Council, she said that electricity is generally taxed higher than gas and this needs to change, while offering to reduce network charges. He also suggested some flexibility in using government aid to help with rising energy costs.
Separately, we will watch the final moments of the parliamentary campaign in Slovenia, local races in France and Germany and the judicial referendum in Italy; It will all happen this weekend.
His Friday, March 20, 2026, his Yakup Krupa here and this Europe Live.
Good morning.
