Morning opening: Spain moves first to help with energy prices
Spain is set to put forward a number of emergency tax cuts this morning to counter the economic impact of the Iran war.
The measures – set to be presented at a press conference 11am local time – are expected to include lowering VAT tax on fuels to 10% from 21%, according to early media reports, alongside other changes, including to the hydrocarbon and electricity duties, intended to help with growing energy prices.
Reuters says that change to the hydrocarbon levy itself alone is likely to lead to an immediate reduction in the price of diesel and petrol between 0.30 and 0.40 euros.
Spain’s prime minister, Pedro Sánchez, has been a leading European voice critical of US and Israeli strike in Iran, repeatedly sounding alarm about its likely economic impact on Europe.
Ministers said earlier this week the measures would include aid for economic sectors most exposed to the crisis, but added that the country’s high generation of renewable energy meant its economy was less exposed to the impact of oil price spikes caused by the war, Reuters noted.
But other countries may now follow as the European Commission president, Ursula von der Leyen, signalled last night that there was some intent to move in this area.
Speaking after a meeting of the European Council, she said that electricity is often taxed higher than gas and that needs to change, while proposing to reduce grid charges. She also suggested some flexibility on the use of state aid to help with growing energy costs.
Separately, we will keep an eye on the final moments of the parliamentary campaign in Slovenia, local races in France and Germany, and the Italian judiciary referendum – all taking place this weekend.
It’s Friday, 20 March 2026, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
Key events
Spanish cabinet meeting on emergency measures ends, with details expected shortly
Sam Jones
in Madrid
Looks like the cabinet meeting has just finished.
Reports from El País suggests that the deal between PSOE and Sumar will result in two decrees: one focused on lowering fuel and energy prices, and another focused on freezing rent prices.
Let’s see.
French navy boards Mozambique-flagged oil tanker from Russia
Meanwhile, we are getting a very interesting line from Reuters saying that the French Navy have boarded an oil tanker in western Mediterranean, which was flying a Mozambican flag and had departed from Russia.
The operation was reportedly carried out with allies, including the UK, a local French official told Reuters.
“After boarding vessel, officials confirmed suspicions regarding the validity of the flag,” the official said.
The vessel is being escorted for further inspection.
More on this when we have it.
Ukraine deploys units to intercept targets in Middle East
As we await more updates from Spain…
Ukraine has deployed interceptor units to protect critical and civil infrastructure in five Middle Eastern countries, Ukraine’s security council secretary Rustem Umerov said after a visit to the region.
“Work is also underway to expand coverage areas,” Umerov wrote on X.
“Ukraine stands in defence of life and sovereignty alongside those who support us in preserving our independence. We seek to further strengthen security partnerships with our allies,” he added.
Hungary officials ‘gave Ukrainian forced injection’ after raid on bank vehicles
Shaun Walker and Flora Garamvolgyi in Budapest
Hungarian security operatives administered a “forced injection” to one of the Ukrainians detained earlier this month during a dramatic raid on bank vehicles carrying gold bars and tens of millions of dollars and euros in cash, sources have told the Guardian.
Hungary’s TEK anti-terrorism police detained seven Ukrainians from the state savings bank, Oschadbank, on 5 March. They were accompanying a convoy of two armoured cars from Vienna to Ukraine, as it transited Hungary in what Kyiv claims was a regular transfer of state funds. Hungarian officials have claimed it was money for the “Ukrainian war mafia”, without giving details.
The men were held for more than 24 hours, much of which they spent blindfolded and in handcuffs, before they were deported to Ukraine. During that time, one of the men – a former employee of Ukraine’s SBU security service – was given the forced injection, security sources in Kyiv said.
The sources added that they believed the injection contained a relaxant that was meant to predispose subjects towards becoming talkative during interrogations. However, the drug reportedly led the man, who is diabetic, to have a hypertensive crisis and lose consciousness. He was eventually taken to hospital.
One of the Ukrainian sources described the forced injection as a “Russian-style method” that harked back to so-called truth serums used in KGB interrogations in previous decades. Traces of a drug of this class were discovered during blood tests carried out after the men returned to Ukraine, said another source.
The Guardian has not seen the test results and could not verify the claims. However, Lóránt Horváth, the Hungarian lawyer for the individuals, confirmed that “one individual received an injection of unknown contents despite his objections”.
A Hungarian police source told the Guardian they had heard from colleagues that an injection had been administered, but did not know what it contained.
The raid came as a crucial parliamentary election approaches in Hungary. Polls suggest that nationalist leader Viktor Orbán is in danger of losing his grip on power after 16 years. Orbán, whose government has regular contact with Moscow, has been the EU’s most pro-Russian leader, and before the election has sought to paint Ukraine and its president, Volodymyr Zelenskyy, as the biggest threat to Hungary.
Numerous reports have alleged that Russia is actively working to support Orbán’s campaign.
Jakub Krupa
Meanwhile, we have an incredible story on Hungary from Shaun Walker and Flora Garamvolgyi in Budapest, relating to a recent dramatic raid by Hungarian authorities on Ukrainian bank vehicles carrying gold bars and tens of millions of dollars and euros in cash.
So, over to Shaun and Flora –
Spanish emergency proposals in response to Middle East crisis facing delays
I am keeping an eye on Spain as we were expecting to hear the government’s proposals by now, but a last-minute political standoff over what will be included in the plan – and in particular whether it will cover housing – means the presentations is getting delayed.
I will bring you more if and when we get to see Pedro Sánchez with the details of the plan.
Belgium’s De Wever defends comments on ‘normalising’ relations with Russia after Ukraine war ends, but insists he is fiercely pro-Ukrainian
Separately, Belgium’s prime minister, Bart De Wever, has defended his comments calling for the normalisation of relations with Russia to re-establish cheap energy supplies.
Earlier this week, he told the Belgian newspaper L’Echo that “we are losing on all fronts, we must end the conflict in Europe’s interest.”
De Wever said Europe had to rearm “and at the same time we must normalise relations with Russia and regain access to cheap energy. It is common sense. In private European leaders tell me I am right, but no one dares say it out loud.”
But during his post-summit presser last night, he defended his position, saying he is used to the fact that “the first one who speaks [out], gets all the bad media.”
“It [caused] a commotion in Belgium, it always [causes] a commotion in Belgium, because it was the an ideal moment to play political games, but I noticed none of that in the room here, none, nothing. People know very well what I think in this room, I’m very outspoken, and they have no doubts of about my loyalty to Ukraine.”
De Wever said that his comments only related to a post-peace scenario, when Ukraine gets an acceptable peace deal with Russia.
“Once you have an acceptable peace for Ukraine and Europe, the next question is, what is your long term relationship [with] Russia?
Should it be hostility, a new cold war for decades, no relations, no economic [exchange], none whatsoever, or should your goal … be to go to normalisation. In that option, my idea as an historian is it would be better to go to normalisation; otherwise you have very little to offer.”
He said it was not up to him or other European leaders to “offer concessions” before a peace agreement with Ukraine is struck, but that the promise “of going back to normal relations is something that could be convincing for the other side” to engage in talks more seriously.
But De Wever insisted he was “very pro-Ukrainian,” particularly given his family background.
“I come from a family that has a history with Ukraine [going back] decades. I could tell you stories about my family in Ukraine that are very colourful.
My brother even smuggled money into Ukraine during the Soviet times to finance dissidents. And … my father was the first to cross the border into Ukraine to set up a aid organisation. My entire childhood, I remember Ukrainian presence in my house where Ukrainian families came to work and to earn some [money].
So the idea that I am not pro-Ukrainian is to me, quite insulting, even at the emotional level.”
But he said it was in Europe’s interest to resolve existing tensions as the geopolitical situation becomes too complicated to navigate.
“Having a war in the Middle East, having a war in Ukraine, having protectionism and tariffs from the United States, having fierce competition from China, with massive dumping of industrial products – it’s a lot for Europe. A lot. If I look around me in the world, I think this is a little bit too much. …
I think we should actively think about our situation and try to get to a better situation, that’s all I wanted to say.”
There are no prizes for guessing that his view is still unlikely to be particularly popular with several other EU leaders, not just in central and eastern Europe, who keep warning about Russia’s aggressive and expansionist policy…
‘I stand for their interests,’ Orbán defends his opposition to EU’s Ukraine loan and calls for return to Russian oil
A large part of last night’s European Council summit was about Viktor Orbán and his refusal to drop his opposition to a vital €90bn (£78bn) loan for Ukraine, with other leaders accusing him of betrayal and acting in bad faith.
But the embattled Hungarian prime minister, who faces a tough election next month which could see him ousted after 16 years in power, ignored the criticisms when briefing the media at the end of the talks.
When asked what Hungarian voters will make of his position, he said:
“I stand for their interest. What I have done here is [tried] to crush the oil blockade imposed on us by Zelenskyy, so I defended the interests of the country.”
Curiously, Orbán also went further, insisting that the EU will need to reset its relations with Russia and import Russian energy to deal with expected shortages caused by the Middle East crisis.
“At this moment, [we are] just knocking on the door of a shortage of oil globally. So the behaviour, the strategy, that Europeans have here is just crazy.
We definitely need the Russian oil, so we cannot survive this situation … without involving Russian fuel energy again. Europe cannot survive without that. Probably now they deny that fact, but it [will] take not more than one or two weeks [and] this will be obvious for everybody.”
Separately, asked if he can still win the upcoming election, he smiled: “Certainly.”
Morning opening: Spain moves first to help with energy prices
Spain is set to put forward a number of emergency tax cuts this morning to counter the economic impact of the Iran war.
The measures – set to be presented at a press conference 11am local time – are expected to include lowering VAT tax on fuels to 10% from 21%, according to early media reports, alongside other changes, including to the hydrocarbon and electricity duties, intended to help with growing energy prices.
Reuters says that change to the hydrocarbon levy itself alone is likely to lead to an immediate reduction in the price of diesel and petrol between 0.30 and 0.40 euros.
Spain’s prime minister, Pedro Sánchez, has been a leading European voice critical of US and Israeli strike in Iran, repeatedly sounding alarm about its likely economic impact on Europe.
Ministers said earlier this week the measures would include aid for economic sectors most exposed to the crisis, but added that the country’s high generation of renewable energy meant its economy was less exposed to the impact of oil price spikes caused by the war, Reuters noted.
But other countries may now follow as the European Commission president, Ursula von der Leyen, signalled last night that there was some intent to move in this area.
Speaking after a meeting of the European Council, she said that electricity is often taxed higher than gas and that needs to change, while proposing to reduce grid charges. She also suggested some flexibility on the use of state aid to help with growing energy costs.
Separately, we will keep an eye on the final moments of the parliamentary campaign in Slovenia, local races in France and Germany, and the Italian judiciary referendum – all taking place this weekend.
It’s Friday, 20 March 2026, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
