The First Vice President of the Government and Minister of Economy, Trade and Business, Carlos Cuerpo, has stated that the anti-crisis measures promoted by the Executive could reduce inflation between eight and ten tenths during the coming months. Specifically, he pointed out that the impact will be especially noticeable in April, May, and June, a key period to evaluate the effectiveness of these policies.
In statements to 'TVE', Cuerpo highlighted that the main objective is to contain the increase in prices derived from the international context, especially due to the conflict in the Middle East. “We hope that these measures will have an impact of around eight, nine tenths and even one point on inflation,” he assured, showing confidence in the evolution of the economy.
The minister also stressed that the temporal horizon of these initiatives is set until June 30. By then, the Executive expects that the economic situation will be “more stabilized,” which would allow avoiding an extension of the measures. However, he left open the possibility of extending them if circumstances require it.
One of the most debated points has been the reduction of fuel VAT to 10%, a measure that has generated certain reservations on the part of the European Commission. Brussels has warned that this reduction does not fully comply with community regulations, although the Spanish Government insists on its temporary nature.
In this regard, Cuerpo explained that Spain has had to resort to VAT as a complementary instrument, since special taxes on fuels have a minimum limit set by European regulations. “We have resorted to the available instruments to reduce the impact of prices on households,” he pointed out.
