Spain prepares economic support plan amid energy price spike



Prime Minister Pedro Sánchez announced on Monday that Spain's government is preparing a package of emergency economic measures worth €6 billion in direct relief and tax concessions, as well as €10 billion in loans, for families and businesses harmed by recent geopolitical events.


Sánchez said in a speech at a business conference in Madrid that the emergency plan will be announced following the government's weekly cabinet meeting on Tuesday, with the goal of "protecting economic growth and jobs."


"This emergency plan in reaction to the war (in Ukraine) comprises a series of actions that will protect economically vulnerable sectors and Spaniards," Sánchez added.


Spain, like the rest of Europe, has been grappling with rising energy prices since last year, with consumers and companies struggling to pay their electricity bills. Oil prices have risen sharply since recent events, and Spain's transport and agricultural industries have asked for assistance in dealing with debilitating gasoline rates.


As Europe's energy crisis has deteriorated as a result of the war, numerous other countries have passed aid packages.


Last Friday, the EU's 27 leaders reached an energy agreement, which included a special dispensation for Spain and Portugal due to price spikes that were unprecedented.


Sánchez claims that his center-left Socialist government is planning "special, temporary measures," like as natural gas price controls, to "substantially and immediately" lower electricity prices.


As Europe's energy crisis has deteriorated as a result of the war, numerous other countries have passed aid packages.


Last Friday, the EU's 27 leaders reached an energy agreement, which included a special dispensation for Spain and Portugal due to price spikes that were unprecedented.


Sánchez claims that his center-left Socialist government is planning "special, temporary measures," like as natural gas price controls, to "substantially and immediately" lower electricity prices.


Rent hikes for households will be limited to a maximum of 2% during the following three months.


In addition, benefit recipients will receive a 15% boost over the next three months. More households will be eligible for reduced power tariffs, bringing the total number of households getting the benefit to 600,000, up from the current 2 million.