A new open façade of a socialist-leaning wing in the government has emerged. Its minority partner, United We Can, shares influence with prominent parliamentary allies such as CKD and Bildu. These groups press the executive to take steps that could reduce the burden of home loan payments. The rapid rise in interest rates, a response to the inflation crisis, put pressure on households, with the European Central Bank seeking to curb the surge. President Pedro Sánchez appears to be navigating through a moment of ambiguity while signaling potential action.
Many consider that some proposed measures could cushion mortgage costs. United We Can and the ERC have recently floated ideas, and discussions involving UGT have also touched on tightening monetary policy to curb inflation and prevent mortgage payments from climbing for families already affected by rising prices. A focal point has been the notion of placing a cap on mortgage installments tied to variable rates for vulnerable households, potentially limiting EURIBOR plus a modest margin for a temporary period.
In social media remarks, Ione Belarra asserted that the European Union framework does not forbid measures to limit mortgage increases. ERC parliamentary spokesperson Gabriel Rufián highlighted a concept of a recovery fund to support families who can no longer cope with mortgage payments. Bildu and Más País also pressed for parallel actions, aligning with this stance.
limited work
Finance Minister Maria Jesús Montero stated that at present no measure has been publicly announced, though the government has shown openness to considering proposals from United We Can and ERC. She indicated ongoing work to relieve citizens who face higher costs, including mortgage-related pressures, while emphasizing that any steps must align with inflation-reduction goals and comply with the regulatory framework. She cautioned that any future measures should be mandatory and properly regulated.
Sources cited indicate caution about the recovery fund proposed by ERC due to potential unintended consequences on default risk. Nonetheless, the government continues to explore a range of options to ease the financial burden caused by higher interest rates, aiming to protect families and support the middle class and workers.
Economy deputy Nadia Calviño reiterated the administration’s commitment to safeguarding households. Gabriel Rufián noted he had forwarded proposals for consideration to the Economy Ministry, acknowledging that goodwill from banks may have been overestimated in past discussions.
Tax changes
Montero also referenced a tax on banks that was advanced in Congress at the request of the governing coalition. The anticipated impact includes tracing mortgage rate increases. Parliamentary leaders confirmed ongoing work on amendments as the bill moves through revisions. In related developments, properties in Basque Country and Navarra are slated to join administration and tax collection efforts.
While these changes are likely to pass during the amendment process, they may not satisfy the banking sector. Some observers point to a need to either modify or remove elements of the current tax framework. There is ongoing debate about reconciling conflicting regulatory directions, including balancing customer protections with financial regulation. Tax advisory experts noted that any reform would aim for a broad change rather than piecemeal adjustments.
The mainstream banking sector, which includes entities formed from savings banks, released recent figures showing tax payments for the prior year. These numbers illustrate a substantial tax contribution and a measurable direct, indirect, and induced economic impact. The numbers reflect the broader effects of public guarantees used earlier in the pandemic and the support framework that helped stabilize the economy at that time, with a noticeable rebound as activity recovered in subsequent periods.