The Spanish government has adopted a comprehensive set of urgent measures to mitigate the economic and social impacts of the international crisis stemming from the conflict in the Middle East. The plan aims to protect citizens and the most vulnerable sectors while promoting energy sovereignty.
The ongoing conflict has not only resulted in civilian and military casualties but has also led to widespread stock market declines, disruptions in air traffic, and the blockade of the Strait of Hormuz, a crucial route for gas and oil transportation. In response to market volatility and rising prices, which have driven inflation and increased energy costs for households and businesses, the extraordinary Council of Ministers on 20 March 2026 approved the Comprehensive Response Plan for the Middle East Crisis. This plan encompasses 80 measures designed to mobilise over €5 billion, benefiting 20 million households and 3 million businesses across Spain.
The plan was updated with a second royal decree law approved by the Council of Ministers on 29 June 2026, extending the measures until 31 September 2026. Given the ongoing maritime transport restrictions and energy tensions, a third royal decree law was approved on 29 September 2026 to further update and expand protections for households and families.
Phased approach to energy measures
The measures are structured to gradually phase out support, with a complete withdrawal anticipated by 31 December 2026. However, direct assistance for transport professionals, as well as farmers, livestock breeders, and fishermen, will remain in place throughout this period. The decree includes both temporary measures to cushion the impact of the conflict on businesses and households, and structural measures aimed at enhancing energy sovereignty, reducing dependence on fossil fuels, and improving the resilience of the Spanish economy against future external crises.
The text, published on 30 September in the Official State Gazette (BOE), came into effect the following day and was ratified by the Congress of Deputies on 16 October 2026. The total budgetary effort from the three royal decree laws now exceeds €12 billion.
Fiscal measures and support for vulnerable sectors
To counteract rising raw material prices and support the most affected productive sectors, the plan temporarily reduces energy taxation. For fuels, the royal decree law approved in September maintains a reduction in the Hydrocarbons Tax for diesel and petrol, with a decreasing application: a reduction of 20 cents per litre in October, 13 cents in November, and 6 cents in December. An automatic reactivation clause ensures that if prices rise above 15%, the 20-cent reduction will be reinstated in November or December.
In the realm of land transport, the new regulation extends fuel subsidies for the last quarter of 2026, with a subsidy of 5 cents per litre in October, 12 cents in November, and 19 cents in December, subject to adjustments if the safeguard mechanism for diesel taxation is activated. Alongside support for professional diesel and fuel, the decree includes safeguards for electricity and gas, limiting increases in the Last Resort Tariff (TUR) for natural gas to 35% in October and 15% in subsequent revisions, while also reducing VAT on electricity from 21% to 10% for consumers with contracted power below 10 kW and for beneficiaries of the social bonus.
Employment protection and social measures
The plan also includes provisions to protect employment and strengthen social security. Beneficiary companies of the aid are prohibited from making dismissals for economic, technical, organisational, production, or force majeure reasons until 31 December 2026. Additionally, the requirement for companies and public entities with over 200 employees to implement sustainable mobility plans has been advanced to 5 December 2026.
Key strategic measures focus on reducing the impact of external crises and advancing energy sovereignty through decarbonisation, electrification of homes and the economy, and the deployment of renewable energies. Several of these measures are tax-related, including a deduction of up to 15% in personal income tax (IRPF) for those acquiring electric vehicles and the reinstatement of deductions for home renovations that reduce heating or cooling demand.
In summary, the third royal decree law maintains the same structure as the previous two packages of the Comprehensive Response Plan, incorporating both temporary measures to continue protections and structural measures aimed at reinforcing energy autonomy and advancing the decarbonisation of the economy.
