The Executive has decided to extend for three months some of the anti-crisis measures approved last March, in response to the situation generated by the conflict in Iran. These actions, along with new additions, total 1.825 million euros. To this figure, 2.700 million euros are added from the reduction and eventual elimination of the tax on electricity production.
However, the VAT reduction on fuel has not been extended, in line with Brussels' recommendations. From July 1st, the tax rate on fuel will return to 21%, reversing the measure that set it at 10%. The VAT reduction on electricity, which already expired on May 31st, also returned to 21% a month before that for fuel.
A progressive reduction in fuel aid for individuals will be implemented. The 20 cents per liter subsidy will decrease to 15 cents in July, 10 cents in August, and 5 cents in September, before disappearing in October. However, farmers, fishermen, and transporters will maintain the 20 cents per liter subsidy.
A special clause has been included that will automatically reactivate the 20 cents per liter aid if the conflict escalates and fuel inflation spikes again. Monthly reviews of the CPI compared to the previous year will be conducted, and if variations indicate it is above 15%, reductions for both electricity and gas will be reactivated based on that result.
Additionally, the control and transparency mechanisms exercised by the National Commission of Markets and Competition (CNMC) over service stations will be reinforced. The CNMC will be authorized to publish a list of establishments with "anomalous behaviors" if they do not reflect the price reduction.
To promote national electrification, the progressive elimination of the Tax on the Value of Electricity Production is being implemented. The rate, currently at 7%, will be reduced to 5% this year, 3.5% in 2027, and eliminated in 2028, which is expected to structurally lower household bills by up to 6%.
Direct aid to farmers for fertilizer purchases will be increased, with an additional 165 million euros to the 500 million already allocated in March. This measure addresses the drastic price increase of fertilizers, linked to the rise in natural gas prices.
Another approved measure prohibits companies receiving aid linked to the Middle East conflict from dismissing employees.
