EXPLAINER
Spain approved a Comprehensive Crisis Response Plan in the Middle East, which mobilizes five billion euros to protect families and companies from the impact of the conflict. The plan includes fiscal measures, support for strategic sectors, energy transition initiatives and protection of access to housing, benefiting around 20 million families and three million companies.
The conflict in the Middle East is having direct consequences in Europe, leading several countries to prepare for a possible crisis scenario. In Spain, following an extraordinary Council of Ministers, a comprehensive package of measures was announced to mitigate the impact of the war.
The so-called integra 80 measures and will mobilize five billion euroswhich should benefit near 20 million families e three million companiessas explained by Prime Minister Pedro Sánchez.
According to the most of these measures will be applied until June 30thregardless of the duration or intensity of the conflict, and its scope and period of validity may be extended if necessary.
The first decree-law approved this Friday is based on two axes: one of cyclical characterto protect the most vulnerable families and economic sectors, and another structural and strategic characterwith measures to reinforce energy sovereignty.
A second specific decree-law was also approved for the housingwhose application depends on approval by Parliament.
Measurements of cyclical character
Fuels:
Reduction in taxes on gasoline and diesel:
- Taxes on gasoline and diesel will be reduced until minimum allowed by the European Union (EU). The Spanish Government thus announced a VAT drop from 21% to 10%resulting in an “effective reduction of up to 30 cents per literdepending on the type of fuel, which represents a savings of around 20 euros per deposit for an average car.”
Support for agriculture, livestock and fishing
- Help from 20 cents per liter of fuel for transporters, farmers and livestock workersas well as support for acquisition of fertilizers.
Natural gas, domestic heating and hydrocarbons
- Tax reduction on natural gas, pellets and firewood for 10%used in domestic heating. It was still frozen the maximum price of butane in 16,35 euros and propane in about 12 euros. The special tax on hydrocarbons will be reduced to the minimum allowed by the European Union (EU), without an exact value having been disclosed.
Energy:
Reduction in electricity taxes:
- Drop in the Tax on Circulation of Goods and Services (ICMS) on electricity from 21% to 10% and the reduction of the special tax on electricity (IEE) for 0,5%.
Suspension of energy tax:
- Temporary suspension of the tax on electricity production (7%), with the aim of reduce production costs and, indirectly, the final energy price.
Electricity social bonus
- Equivalent to our social energy tariff, obsocial burden of electricity he was reinforced until December this yearmaintaining discounts of 42,5% for vulnerable consumers and 57,5% for the extremely vulnerable, with interruption of supply to these homes being prohibited.
Cost reduction for electro-intensive industries
- Reduction of 80% nos electricity transport and distribution costs for the entire electro-intensive industry, that is, for companies with high energy consumption in their production. These will become pay only 20% of these costswhich, according to the Spanish Government, should generate savings of around 200 million euros.
Flexibility in energy contracts
- Bigger legal flexibility for companies and independent workers to adapt energy supply contracts, allowing adjustments or changes in electricity and gas contracts simplest way.
Housing:
- The Spanish Government approved another decree-law to temporarily freeze rental prices, but still does not have a parliamentary majority to validate it. Pedro Sánchez stated that negotiations with parliamentary groups will continue in the coming weeks to approve the measure and respond to the housing crisis. According to the the measure consists of freeze for two years around 600,000 leases scheduled to end in 2026.
Labor sector:
Prohibition of dismissals
- It is prohibited to dismiss workers for reasons linked to the energy crisis in companies that receive public support.
Sustainable mobility plans:
- Companies with more than 200 workers (or 100 per shift) will have to have sustainable mobility plans until December 5th of this year, anticipating the entry into force foreseen in the law.
Limitation of profits:
- The decree establishes limits on the profits of large companies to prevent unjustified price increases during the crisis.
Measurements of character structural and strategic
The second axis focuses on long term stocks to electrify and decarbonize the Spanish economy, making the country more resistant to energy crises.
Renewable energy incentives
- The plan includes IRS deductions for the installation of solar panels, electrical charging points and heat pumpsin addition to new aid for the air conditioning of buildings and investment in renewable energy.
