The head of government, Pedro Sánchez, delivered a formal address outlining a fresh package of measures designed to curb the ongoing inflationary surge. Central to this plan is the introduction of two temporary taxes: one aimed at major financial institutions and another targeting large energy companies. In addition, the package includes support for students by offering a transport card or a 100-euro monthly top-up through the end of the year.
The government intends to increase progressivity by raising revenue from higher earners while extending aid to households that feel the squeeze of rising prices and reduce consumption elsewhere. This framework was laid out in Sánchez’s Tuesday speech to Congress, where he emphasized funding mechanisms and the strategic use of public money to encourage the use of public transport as fuel costs climb. Previously, a 50 percent discount on transport passes was introduced in the initial measures; the plan now elevates that incentive to as much as 100 percent for certain commuters. Consequently, from September 1 to December 31, eligible Renfe regional and long-distance services, as well as certain suburban routes, would be made free for a defined group of travelers. The broader scheme also extends the 30 percent subsidy on urban and metropolitan transport subscriptions, with autonomous communities empowered to increase this support to 50 or 60 percent where feasible.
Affected groups include students who are beneficiaries of government scholarships. These students will receive the same increase in assistance during the next three months, from September through December, at a rate of 100 euros per month. Government officials estimate that roughly one million scholarship recipients will gain from this measure, reflecting a significant portion of the student population that relies on public funds to manage transportation and related needs while pursuing studies.
The administration also aims to reduce the windfall profits generated by certain industries amid the price pressures of the crisis. As the cost of money rises and central banks set higher rates, banks can see increased revenue from higher lending margins and fees. In response, Sánchez announced the creation of a temporary banking tax intended to run for two years, projected to yield about 1.5 billion euros annually for the state budget. This step is presented as a targeted contribution from the financial sector toward alleviating the inflationary burden on households and the broader economy.
Additionally, at the request of the government partner United We Can, the plan includes a temporary tax on large energy companies that benefit from the current rise in electricity and gas prices. This levy will apply to profits and dividend distributions for the years 2022 and 2023, with the expectation of generating roughly 2 billion euros per year for the state. The tax is designed to fund ongoing relief measures and to ensure that both consumers and the broader economy share in the costs created by energy market volatility. Together, these components form a multi-faceted strategy that aims to stabilize prices, maintain social equity, and preserve fiscal space for essential public services during an economically challenging period.