The Spanish government will approve extraordinary measures on Friday regarding the war with Iran.
According to Moncloa, the economic response plan will include both short-term and long-term measures for the affected sectors and the "most vulnerable."
The Spanish government will hold an extraordinary cabinet meeting on Friday to address the economic effects of the Iran war 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 vulnerable economic sectors. This Monday, the Minister of Economy, Carlos Cuerpo, and the Minister of Agriculture, Luis Planas, are scheduled to meet with representatives from the food, fertilizer, and animal feed industries 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 biggest crisis is occurring due to the blockade of the Strait of Hormuz, through which 20% of the world's oil passes. It is true that a few days ago the Spanish government reduced the possibility of taking 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 for the freight transport and agri-food sectors.
It is certainly true that the decree law approved by the Spanish government must be agreed upon with the partners in the Sumar coalition—who had flirted with the idea of incorporating the anti-eviction measures that Congress has already rejected twice—and also with the parliamentary partners, some of whom, like Podemos, are demanding that the government intervene directly in market prices for housing and food, or nationalize Repsol. In fact, the Spanish executive is taking its time to finalize the measures, as it is convening an extraordinary cabinet meeting on Friday instead of approving the package of measures tomorrow, Tuesday, at this week's regular government meeting, as announced last week by the Spanish Second Vice President, Yolanda Díaz (Sumar).
