The Spanish government will approve extraordinary measures on Friday due to the war in Iran.

The Spanish government will hold an extraordinary cabinet meeting on Friday to address the economic effects of the war in Iran and approve a package of measures. Sources at La Moncloa (the Prime Minister's official residence) explain that the response plan for the war in the Middle East will include both short-term and long-term solutions, as confirmed by the Third Vice President and Minister for Ecological Transition, Sara Aagesen. However, these will not initially be generalized measures like those implemented for fuel during the war in Ukraine, but rather will prioritize the most affected and also the most vulnerable economic sectors. This Monday, the Minister of Economy, Carlos Cuerpo, and the Minister of Agriculture, Luis Planas, are scheduled to meet with representatives of the food industry, the fertilizer sector, and the animal feed sector to discuss the necessary measures for this economic sector, one of the hardest hit by the US-Israeli war against Iran. which blocks the Strait of Hormuz in response. The measures will not only address the increase in fuel prices but also the suspension of fertilizer trade, which will have a significant impact due to the conflict. In a statement to the media before participating in the 18th Cesce 2026 Conference in Madrid, the Minister of Economy, Carlos Cuerpo, emphasized that the government is working as quickly as possible to define these measures "rigorously": "We want the broadest possible consensus," he said. The measures

For now, the minister has ruled out approving a VAT reduction on food and will instead focus on fuel, where the most serious crisis is occurring due to the blockade of the Strait of Hormuz, through which 20% of the world's oil passes. However, a few days ago the Spanish government reduced the likelihood of implementing measures such as the fuel price subsidies that were applied across the board in 2022 to the entire population following the war in Ukraine (the 20-cent discount), and is now opting for tax measures or subsidies for fuel purchases by the freight transport and agri-food sectors.

Now, the decree law that the Spanish government approves must be agreed upon with Sumar's partners—who had flirted with the idea of ​​incorporating the anti-eviction measures that Congress has already rejected twice—and also with its parliamentary partners, some of whom, like Podemos, are demanding that it intervene directly in market prices for housing and food, or nationalize Repsol.

On the other hand, on the other side of the political spectrum, Junts has already presented its conditions: a reduction of VAT to 5% for essential energy supplies; a deflation of personal income tax; that the administration assume the payment of rents for vulnerable families who are about to be evicted—and not that rent payments be suspended, affecting the purchasing power of landlords—; The proposals include establishing a 0% VAT rate for home purchases by those under 35, and eliminating the general application of the 7% tax on the value of electricity production to reduce bills. The PNB (Nationalist Party of Spain) is also calling for the reinstatement of the Iberian exception to limit gas prices, subsidies for gas supplies for the most vulnerable families, and fuel price reductions for certain sectors. In fact, the Spanish government is taking its time to finalize the measures, convening an extraordinary cabinet meeting on Friday instead of approving the package tomorrow, Tuesday, at this week's regular government meeting, as announced last week by Spain's Second Vice President, Yolanda Díaz (Sumar).