Pedro Sánchez speaking at the conference of regional presidents. | Elvira Urquijo

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Prime Minister Pedro Sánchez announced on Sunday that the government will introduce tax cuts for sectors of the economy affected by war in Ukraine.

Speaking at the conference of regional presidents in La Palma, Sánchez said that there will be a conference involving regional finance ministers and the government's ministers for economic affairs and ecological transition, Nadia Calviño and Teresa Ribera, at which regional proposals will be discussed. These proposals, the prime minister explained, will be for a national plan to respond to the crisis caused by the war that will be presented to Congress.

Sánchez didn't specify these tax cuts, but on energy he suggested that gas connections from Spain could be a key element in reducing European dependence on Russia. He was referring to gas supplies from Algeria to Spain, also noting that connections should allow green hydrogen.

The prime minister argued that the war and the pandemic should make the EU review its fiscal rules in order to adapt these to a new economic reality. In addition, he called on the regional governments to speed up the use of funds (e.g. EU Next Generation funds) for renewable energy, energy efficiency and housing renovation in order to increase energy autonomy. The government, he added, will be streamlining procedures for undertaking energy efficiency projects and for the development of renewable energy.