Asger Risom
Spain has approved a €5 billion package to offset rising fuel prices and economic risks linked to the Iran war, as Prime Minister Pedro Sánchez warns of the direct cost to households.
Spain is moving to cushion its economy from the fallout of the Iran conflict, as rising fuel prices begin to hit households and businesses.
A sweeping support package signals growing concern in Madrid over inflation and slowing growth linked to the crisis.
According to Euronews, Spain’s parliament approved a €5 billion plan aimed at easing the economic strain caused by the الحرب, with strong backing from lawmakers. The measures passed with 175 votes in favor, 33 against, and 141 abstentions.
Prime Minister Pedro Sánchez said the package is designed to protect key industries and vulnerable groups from surging costs.
“These measures are designed to protect our productive sectors and the most vulnerable people,” he said while presenting the plan.
Prices Surge
Fuel costs have risen sharply since the conflict began. Prices climbed from €1.3 per liter in late February to around €1.8 in recent days.
To counter this, the government is cutting value-added tax on gas and fuel, which could lower prices at the pump by up to €0.3 per liter.
For drivers, this translates into savings of roughly €20 per full tank, according to Euronews.
Additional support includes a €0.2-per-liter subsidy for transport operators, farmers, livestock producers and fishermen, along with reductions in electricity taxes.
Economic Buffer
Spain, the eurozone’s fourth-largest economy, has recently outperformed many of its European peers, driven by consumption, tourism and exports, Euronews reported.
Officials now fear the Iran war could disrupt that momentum by pushing energy costs higher and weighing on demand.
The government’s response is aimed at preventing a broader slowdown while maintaining support for critical sectors.
Political Stand
Sánchez has also taken a firm stance against the military campaign itself, previously rejecting US requests to use Spanish bases in operations against Iran.
He linked the conflict directly to rising costs faced by citizens.
“Every bomb that falls in the Middle East ends up, as we are already seeing, in the wallets of our families,” Sánchez told parliament.
The remarks reflect Madrid’s broader position that the war carries both legal and economic consequences for Europe.
Sources: Euronews
