Government approves €5 billion package to offset impact of Middle East war

The Spanish government has approved two royal decree‑laws mobilising €5 billion to cushion the economic impact of the war in the Middle East.

The measures include major tax cuts on electricity, gas and fuel, expanded protections for vulnerable households, and targeted support for transport, agriculture and energy‑intensive industries.

The package also introduces incentives for renewable energy installations and home efficiency upgrades.

A second decree freezes rental prices temporarily, with the government acknowledging it still lacks the parliamentary majority needed for full approval.

Photo: Pool Moncloa / Fernando Calvo.