Spain's Prime Minister Pedro Sanchez has presented his "National Plan" to the parliament to help counter the economic fallout from the Russia-Ukraine conflict.

The energy crisis has affected many areas of society and led to large scale protests across the country. In presenting his plan to the Spanish Congress, the Prime Minister said cutting electricity prices was the key to reducing inflation and the cost of living.

"In the coming weeks, we will put in place extraordinary temporary measures to reduce electricity prices for consumers and for business. I am convinced that they are going to have an immediate impact, not only on the recent increases to the price of our electricity but also the cost of living in our country," he told his fellow parliamentarians.

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$17.5 billion aid package

In total, $17.5 billion was earmarked to help the country until the summer. Nearly $7 billion will be made available as direct aid in areas such as petrol subsidies and tax reduction. The rest will go into a state-backed credit system to help reduce the effect of price rises for families and businesses.

CGTN Europe spoke to people in Madrid and found most were broadly supportive of the action plan.

One woman said: "Prices have risen a lot recently. Everything has got more expensive, even in the supermarkets. Sometimes you can't even find the basic products. So, I think it's good that the government finally acted to support vulnerable people on low incomes."

Another man added: "Of course, it's always good to help the people in need and try to reduce the burden of rising prices for the population. Especially for the more vulnerable addressing their basic needs."

Petrol prices

Car owners and the transport industry will also be relieved. A 20 cent per litre reduction in petrol prices will also be introduced across the board. It's hoped this will help reduce pressure on the economy that saw inflation rates climb to a 37-year high last month.

There was also welcome news to help the most vulnerable. Rent increases would be limited to two percent and the minimum income scheme would increase by 15 percent. The Energy Benefit Program would also be expanded to include more families.

There will also be continued support for Ukrainian refugees entering Spain. Additional funds would be made available to make their transition to residency easier with more centers being opened around the country.