The Spanish government is set to approve its initial measures to lessen the economic impact of the war in Iran at the Council of Ministers meeting next Tuesday.
Vice President Yolanda Díaz explained this in a TVE interview, just ahead of the government’s meeting on Thursday with unions and employers’ associations to review its response plan to the Middle East conflict.
The Minister of Labour also noted that the measures, which would take effect immediately upon publication in the Official State Gazette (BOE), could include a ban on energy-related layoffs, mobility programs, tax relief for the hardest-hit sectors, and other supportive initiatives.
“We are fine-tuning the measures day by day, and we will approve some of them next Tuesday,” she said.
The key economic ministries, Economy, Finance, Labour, Energy, and Social Security, will meet with union leaders from CCOO and UGT, as well as representatives from the Spanish employers’ associations CEOE and Cepyme, to advance the package of measures being prepared by Moncloa Palace.
Economy Minister Carlos Cuerpo recently acknowledged that the effects of the war are already hitting household budgets, and he warned on Wednesday that within the next four to 10 days, the full increase in oil and gas prices would likely be passed on to consumers.
He was referring not only to fuel prices but also to rising electricity bills for certain consumers and, eventually, the cost of basic groceries. In response, the government aims to introduce a package that goes beyond energy-related measures.
This could involve reviving some social safety net proposals that were blocked in Congress a few weeks ago, which the executive branch is expected to approve again, as Díaz has indicated.
So far, unions and employers’ associations have not put forward major demands and are expected to do so at Thursday’s meeting. According to CCOO, unions generally favour measures that cap prices, while the business sector leans toward tax breaks and incentives, a split that mirrors the approach seen during the war in Ukraine.
Furthermore, the Third Vice President and Minister for Ecological Transition, Sara Aagesen, has outlined that the Spanish government’s plan will feature both short-term, one-off measures and longer-term structural initiatives.
The measures are designed to support businesses, workers, and households, and could include actions similar to those approved in 2022 following the outbreak of the war in Ukraine, such as fuel subsidies or reduced VAT on food.
Structural measures, the minister explained, are intended to enhance strategic autonomy and advance the energy transition, with the goal of making the country “less exposed” to price volatility.
The Ministries of Energy and Economy also held meetings with sectors directly or indirectly affected by the Middle East conflict, including the gas and oil industry and major energy-consuming companies. On Thursday, the Minister of Economy is scheduled to meet with representatives from the distribution and logistics sectors.