Watch: Spain is spending €5bn to lower its energy costs — will other EU members follow?

Published on 23/03/2026 - 10:17 GMT+1

Next clip you grumble astatine the petrol pump, who should you truly beryllium huffy at? The lipid companies, your government, oregon the EU?

The information is, you are paying for a batch much than conscionable the vigor itself. In 20 EU countries, taxes swallow much than fractional the terms of petrol.

The EU sets a minimum petrol tax, but nationalist governments heap connected the rest. So erstwhile the Iran warfare spikes lipid prices, these dense levies multiply the symptom for your wallet. So, are immoderate governments stepping successful to easiness the pressure?

The reply is yes, and Spain is starring the charge. Prime Minister Pedro Sanchez conscionable took drastic action, rolling retired a €5bn exigency bundle featuring 80 antithetic measures.

The modular 21% VAT connected fuel, electricity, and earthy state volition spell down to conscionable 10%. For drivers, that chopped is expected to sound astir 30 cents disconnected a litre of petrol.

And the retail terms of butane and propane, the state utilized to powerfulness your stove and vigor your home, volition beryllium wholly frozen.

Finally, the authorities is besides temporarily suspending the taxation connected the worth of energy accumulation and issuing nonstop substance subsidies for farmers and fishermen.

And immoderate countries are pursuing suit. Italy and Austria are already readying their ain nationalist taxation cuts to shield citizens.

At past week’s summit, EU leaders asked the European Commission to draught impermanent exigency measures. Which is fundamentally governmental talk for: "we request to find a speedy hole to halt the bleed."

But the wide decision seems to beryllium clear: the lone imperishable flight from volatile substance prices is simply a faster displacement to home renewables.

Let’s look again astatine Spain. Because astir 60% of their powerfulness already comes from renewables, they are people shielded from these state terms spikes.

I conscionable privation we had that benignant of sunlight present successful Brussels.

Watch the Euronews video successful the subordinate supra for the afloat story.