The Spanish government has approved a package of emergency economic measures worth more than 9 billion euros ($9.5 billion) to try to temper the economic fallout from the Russian invasion of Ukraine, Prime Minister Pedro Snchez said on Saturday.

This war and its economic and social consequences have produced extraordinary uncertainty regarding the European and international economy and, of course, the Spanish economy, Snchez told reporters.

Therefore, we cushion this effect with the instruments at our disposal and fairly and equitably share the economic and social costs of war, he added.

The measures include a reduction in the electricity tax, from 10% to 5%, a reduction in the cost of monthly public transport passes and a one-time payment of 200 euros (211 USD) for people who earn less of 14,000 euro. ($14,756) per year and are not yet receiving benefits.

A series of measures already announced, such as a 20-cent reduction in the price of gasoline at the pump and a 15% increase for benefit recipients, will be extended.

The government is also designing a tax aimed at the windfall profits made by energy companies since Russia’s war in Ukraine drove up prices, said Snchez, whose Socialists lead a coalition government.

This is an initiative in tune with public opinion in our country, said the Prime Minister.

His announcement came less than a week after the opposition People’s Party won an unprecedented majority government in Spain’s southern region of Andalusia.

Several analysts have linked the loss of Socialists in a region that was once a party stronghold to growing concerns about rising inflation and the cost of living.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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