Spain's Sanchez says global citizens shouldn't pay for fallout of Iran war

By Victoria Waldersee

MADRID, March 25 (Reuters) - Spanish Prime Minister Pedro Sanchez said on Wednesday it was unjust for citizens worldwide to bear the cost of what he called illegal U.S. and Israeli actions in Iran, warning the war was inflicting severe global economic damage, with Spanish firms alone losing 100 billion euros ($116 billion) in under a month.

"Every bomb that falls in the Middle East hits the wallets of our families," he told lawmakers in a parliament session laying out the reasons for his government's steadfast opposition to the war, a stance that has since been echoed by other European leaders.

The 100‑billion‑euro figure referred to the decline in the aggregate market capitalisation of Spain's blue‑chip IBEX index since the conflict erupted on February 28.

Parliament is expected to vote on Thursday on measures proposed by the cabinet last week to help citizens weather the economic fallout, including lowering fuel and electricity taxes and granting fuel subsidies to sectors most exposed to energy price spikes.

'NETANYAHU AIMS TO DESTROY LEBANON'

Sanchez, one of the most vocal supporters of Palestinians among Western leaders, also warned on Wednesday that Israel was seeking to inflict on Lebanon the same level of devastation it had brought to the Gaza Strip.

"An emboldened Israeli Prime Minister (Benjamin) Netanyahu aims to inflict on Lebanon the same destruction and suffering that was committed in Gaza," he said, speaking a day after Israeli ministers announced their intent to seize Lebanon's southern territory.

"It's not fair that someone sets fire to the world and the rest of us have to swallow the ashes," he added.

($1 = 0.8619 euros)

(Reporting by Victoria Waldersee; Writing by David Latona and Victoria Waldersee; Editing by Charlie Devereux and Ros Russell)