The Minister of Economy, Commerce and Business, Carlos Body, announced this Monday that the Government will approve this week a package of measures to address the economic impact derived from the war in Iran, which will foreseeably be approved next Friday in an extraordinary Council of Ministers convened to urgently address the situation.
The head of the Economy has indicated that the coalition Executive is working “as quickly as possible” to define the actions, after maintaining contacts with the sectors most affected by the increase in the cost of energy and certain inputs. “We want the greatest possible consensus. That is what leads us to do it with the necessary rigor and responsibility and with the foresight of having them this week,” he stated before participating in the XVIII Cesce 2026 Conference.
Corps recalled that this Monday it will hold, together with the Minister of Agriculture, Fisheries and Food, Luis Planas, a meeting with the agri-food sector, one of the most affected by the increase in energy costs. The rise in fuel prices and products such as fertilizers is putting pressure on production costs in the food chain, which is of particular concern to the Executive.
“From there we will be in a position to approve this package of measures this week,” Corps reiterated.
For now there is no question of reducing VAT on food
The minister has ruled out, for the moment, adopting broader decisions such as reducing VAT on food, considering that the current impact of the conflict is mainly concentrated in the energy market.
“Right now we have to be very focused on the impact we are seeing from the war and right now that impact is focused on the rise in fuel prices,” he explained.
In this sense, Corpus has trusted that the increase in energy prices can be stopped not only with support for citizens, companies and workers, but also with an eventual de-escalation of the conflict. In the event that the effects are subsequently transferred to other prices, such as food, the Government does not rule out expanding the package of measures. “We are prepared to respond flexibly,” he stressed.
No anomalies in fuel prices
Body has also recalled that the Executive has already reinforced surveillance over price formation in the fuel market, with monitoring by the National Markets and Competition Commission (CNMC) and the ministries of Ecological Transition and Economy.
So far, the CNMC has not detected irregularities in the more than 12,000 service stations in the country. “The existence of any anomaly has not been reported,” said Body, who wanted to send a message of peace of mind to consumers.
The Government, he added, will closely follow the evolution of prices both in the rising phase and when there is a possible drop in oil. “When the price of crude oil falls, we will have to observe that this reduction is also reflected in the price of fuel for the consumer,” he emphasized.
Waiting for the ECB’s decision
In parallel, the minister has referred to the meeting of the European Central Bank (ECB) scheduled for this Thursday, although he has avoided anticipating what the body’s decision on interest rates will be.
According to Body, the markets for now interpret the economic impact of the war as a temporary “shock”, so it will be necessary to see if the ECB considers that the rise in prices is temporary or if it decides to react immediately. “We will see what their interpretation is and if they consider that medium-term inflation expectations remain anchored around 2%, which is their objective,” he indicated.