Pedro Sánchez has confirmed that the VAT on gas will fall from 21 to 5%. ” The Government of Spain will propose a reduction of 21% to 5% of the VAT on gas. We are going to do it in line with the economic policy that we are deploying since the beginning of the energy crisis. Selective tax cuts for the benefit of the working middle class while making an equitable distribution of the costs of the war,” he stressed.
Brussels has recognised that it is necessary to intervene the energy market to escape Putin’s “blackmail”. On whether the ‘Iberian exception’ will end up becoming a European norm, Sánchez has acknowledged that he would like it to be: “I would like it. I believe that there is no time to lose and we must go forward together”.
In this context, the leader of the central executive has ruled out energy restrictions next winter because, although “the context is very uncertain”, in Spain “we have a much more comfortable situation than other countries”.
Sánchez has also said that when they raised the price cap on gas they did not find “neither the support of the PP of Casado, nor the PP of Ayuso, nor the PP of Feijóo”. In this sense he has confirmed that he called Feijóo a few months ago to offer him “11 agreements”. ” The communication is bidirectional. I used to call the President of the Government and I supported him. Now it has not happened, nor is happening,” he said.
In a context of war such as the current one by the invasion of Russia in Ukraine, the President of the Government has recognized that military spending will increase: “This is the approach we will make”, he said. The intention is to extend up to 2,500 million euros the appropriation for the Ministry headed by Margarita Robles in the General State Budget of 2023.
In his opinion, the forecasts for a resolution of the conflict in Eastern Europe are not very encouraging: “Unfortunately, at present it does not seem that the peace talks between the two sides can be opened”.
In early June, Algeria suspended the friendship treaty with Spain and froze trade following the Government’s turn over Western Sahara, in line with Morocco. This Thursday, the President of the Executive detailed the point on which relations with Algerians are found: “I have always defended that Spain can have extraordinary relations with two such important neighbors. We are working to get it back on track,” he said.