Spain announces $10bn aid package in bid to ease inflation pain | Business and Economy News

TL;DR

Spain announces $10bn aid package in bid to ease inflation painMeasures come as Madrid grapples with a cost-of-living crisis exacerbated by the economic fallout from the Ukraine war.Spain, like other European countries, has been grappling with a cost-of-living crisis exacerbated by the impact of the war in Ukraine on energy prices.The package unveiled on Tuesday includes a one-off bonus of 200 euros ($213) for about 4.2 million households with annual incomes up to 27,000 euros ($28,800) and the extension of tax cuts for energy bills into the first half of next year, Prime Minister Pedro Sanchez told reporters.The government said it will cut the value added tax (VAT) on essential foods such as bread, cheese, milk, fruit and vegetables and cereals to 0 percent from 4 percent.However, a rebate on the price of petrol for consumers except for the haulage sector will be discontinued."

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