The Congress is preparing to vote this Friday on Decree-Law 25/2026, which extends and modifies the measures in response to the crisis caused by the Iran War. It was approved on September 29, in the same Council of Ministers that approved the housing decree-laws that Congress repealed and that caused the early elections on November 29. Eons ago, really.
The decree-law came into effect, generally, on October 1 but, like all decree-laws, it must be validated within a month by Congress. In this case, not by the Plenary but by the Permanent Deputation, as the General Courts are dissolved due to the early elections.
The arithmetic of the Deputation is more favorable to the Government – it does not need Junts to reach an absolute majority --, but in this case, it is irrelevant: the decree-law will be repealed. No one wants, especially in the middle of the pre-campaign, to be responsible for gasoline and diesel prices rising (even more).
What measures are at stake?
Hydrocarbons Tax
Tax reduction on gasoline and diesel, although with a forecast of a gradual withdrawal depending on the evolution of prices.
After exceeding 15% in September, discounts will remain at this level in November, instead of being reduced to 13 cents. In December, a new review.
Reduced VAT on electricity and gas
Application of a 10% VAT compared to the general rate of 21%, depending on the CPI data.
In November, however, it will return to 21% as no increase of at least 15% is registered as the decree-law foresees.
Special Tax on Electricity
Reduction to 0.5% compared to the ordinary rate of 5.11% during October. In November it returns to the ordinary rate as it does not reach a price increase of 15%.
Capped increases of regulated gas
The regulated gas rate TUR (last resort rate) has capped its increases at 35% in October and 15% in January.
Professional transport aid
Extension of extraordinary aid for diesel used by professional transporters, in coordination with the reductions of the Hydrocarbons Tax (5 cents/liter in October, 12 cents/liter in November, 19 cents/liter in December).
Aid to agriculture and fishing
Extension until December 31 of compensatory aid to fishing vessel owners and extension of tax refunds for agricultural diesel, subject to conditions.
Prohibition of layoffs due to the crisis
The companies that receive aid from the decree-law will not be able to justify layoffs or cessation of activity until the end of the year for reasons linked to the crisis.
Law on the prevention of money laundering
Modification of Law 10/2010 to provide a new legal definition of cryptoassets and their providers, strengthen controls over international operations –with a particular focus on Russia and the possibility of evading sanctions--, classify new serious penalties for non-compliance with European rules and recognize more supervisory functions for the SEPBLAC.