The Council of Ministers awaits the completion of negotiations between PSOE and Unidas Podemos before ratifying the third anti-crisis package. This royal decree, crafted to mitigate the impact of the Ukraine war, includes measures that are expected to be announced by Prime Minister Pedro Sánchez after the final executive session of the year. The decisions span from fuel subsidies to urban and rural transport, and even foreign investment in Spanish companies, shaping a broad response to the current economic pressures.
Discounts on fuel and support for rural life and transport
The decree calls for a 20-cent shield on fuel through 2023 and provides support to offset extra costs faced by farmers, notably for fertilizers, a core element of agricultural production. The aid totals up to 300 million euros, offering 20 euros per hectare for dry land and 50 euros per hectare for irrigated land.
Diesel assistance is also approved for fishing vessel and trap owners, with a allocation of 120 million euros. Subsidies extend to maritime passenger and freight services on routes of public interest, including the Balearic and Canary Islands. Road transport companies will receive 20 cents per liter of diesel from January 1 to March 31, 2023, and 10 cents per liter from April 1 to June 30, 2023. Direct and extraordinary fuel and energy assistance are also planned for taxis, chauffeured transport, ambulances, and urban and suburban passenger services.
Staple foods
The coalition government is negotiating measures to improve food prices, including a 300-euro voucher for vulnerable families and a VAT reduction on essential foods. The draft decree notes that price increases have been particularly pronounced in staples such as flour, butter, and sugar, with annual rises approaching 40 percent.
Transportation benefits
There is a move to cap highway toll increases in the current draft. A temporary wage-indexing brake is proposed at 8.5 percent for up to two years or until a new toll/revenue review framework for state concessions is approved by the Executive. An additional benefit targets public road transport users: discounts on multi-trip tickets on state-managed lines will be 100 percent during certain months if users meet trip thresholds—12 trips in the first quarter and 16 trips in the four-month period from May 1 to December 31. The program aims to continue and expand discounts for Renfe customers, with half-price benefits for those who have previously used the service. Rodalies users are set to gain access to a new multi-trip ticket that could be free for eligible commuters.
Protection measures
As talks between the PSOE government and Unidas Podemos conclude, the decree includes provisions on leases and eviction procedures for vulnerable households with no shelter alternatives. Other lease-related issues, including matters concerning lessees and the termination of contracts, have been extended to June 30, 2023.
Foreign investment
In addition to crisis measures, the decree contemplates limiting significant investments by third-country entities in strategic sectors. The suspension period for these controls has been extended by two years. Criteria cover investments of 10 percent or more that confer control, affecting both listed and unlisted Spanish companies with investments exceeding 500 million euros.
Minimum wage and non-contributory retirement
If a formal interprofessional minimum wage agreement for 2023 is not reached, the government’s draft extends the current level of 1,000 euros across 14 payments until the decree for 2023 is approved. Once a final amount is agreed, the administrator may implement it immediately or with retroactive effect from January 1. The anti-inflation package includes extending a 15 percent wage rise through 2023, along with protections for pensions and the Minimum Vital Income, with amounts tied to pension levels. The manufacturing sector receives support through a program allowing partial retirement in exchange for younger hiring, and a new public employment plan for 2022 has been approved, offering up to 1,000 positions on the Local Government Scale with national qualifications.
Extension of tax relief on electricity and natural gas
The government plans to expand the scope of measures already in place, including a 5 percent VAT reduction on electricity through late June and a separate 5 percent tax on electricity bills for vulnerable households. A 0.5 percent Special Electricity Tax, as well as the suspension of the 7 percent tax on electricity generation, are part of the package. VAT on biomass, wood pellets used for heating, and natural gas remains at 5 percent, and certain health-related masks and vaccines remain taxed at reduced rates or zero percent in line with public health priorities. This broader relief aims to ease household energy costs while ensuring essential services remain accessible. Note: the decree reflects ongoing fiscal support aligned with social protections, as reported by the government.