Spain Will Adopt Own Measures To Cut Energy Prices Says Montero

Spain’s Minister of Finance and Civil Service, María Jesús Montero, announced that the Spanish government will pass measures to cut energy prices in the country should the European Union Leaders not agree on ‘common measures’.

Speaking in an interview with TV station TVE on Thursday, the Minister said "If no common measures are agreed during the Versailles summit, the government of Spain will pass its own ones.”

Montero did however express confidence that when the European Council meets in France on Thursday and Friday, an agreement will be reached to reduce the excessive rise in energy. If not, Spain will “adopt its own.”

The Minister also highlighted the Government's commitment "with the families and the productive fabric that are most vulnerable or dependent on energy costs".

This comes at a time when electricity has risen above 500 euros per megawatt-hour (MWh), gas has surpassed 300 euros/MWh and gasoline is approaching 2 euros per litre.

This erratic rise has led to the European Commission having to take exceptional measures this week, as it becomes clear that the measures that were presented back in October, have been overwhelmed by the repercussions of the invasion of Ukraine.

One proposal from the Community Executive is the setting up of an obligatory gas reserve so that countries can face the winter but reduce dependence on Russian gas and at the same time open the door for the Member States to be able to regulate provisional prices and impose short-term taxes on the exceptional profits made by electricity companies.

"Spain has always argued that coordinated actions had to be developed from Europe, taxing the benefits of electricity companies or a strategic reserve," Montero recalled, making reference to the measures put forward by the Community Executive last year, who defended a “balance” between the lowering of taxes and the offering of aid.

When asked if there is a possibility that taxes will be reduced in order to counterbalance the rise in energy, the Minister pointed out that “the Government is working to reduce the bill for raw materials.”

However it has not been disclosed whether the taxes will be on automotive fuel or gas, "We can neither confirm nor rule out anything,” said Montero “the reductions need to be made with moderation, with balance, so that their impact on public accounts is compatible with attention to the aid needs that are emerging in vulnerable groups and economic sectors.

"It is important to convey that all the measures are balanced because in the same way that we have to lower the bills, we have to do it with sufficient measure and balance that allows us to meet the aid needs of the most vulnerable sectors and groups", she stressed.

Montero also added that the Budget for 2022 "will be at the service of this crisis" and "the necessary measures will be adopted to deal with it".

"We have to analyse every moment so as not to adopt measures that could aggravate the situation and make inflation more persistent.”

Talking about the main opposition party, the PP, the Minister said that she “trusts that the Partido Popular” will change the game plan that has been in place up until now and as the era of Pablo Casado ends and a new one begins with the arrival of new leader Alberto Núñez Feijóo, she hopes that State agreements will be reached.

"Of course, hope is never lost,” said the Minister of Finance, "one always has the expectation that the main opposition party will change the strategy it has followed to date and stop opposing everything the government proposes".

Montero believes there is no better time to launch a state pact "for all those big issues,” referring to the Ukrainian conflict that must be "capable of preserving so that the economic crisis has the least possible impact."

Source

https://www.rtve.es/noticias/20220310/montero-hora/2306804.shtml
https://www.nasdaq.com/articles/spain-to-pass-own-measures-to-cut-energy-prices-if-eu-does-not-minister-says

Image Credit: La Moncloa