Home Madrid scholarships Spain has announced a special tax on the profits of large banks and energy companies

Spain has announced a special tax on the profits of large banks and energy companies

0

“We will not allow the suffering of the many to become the benefit of the few,” Spanish Prime Minister Pedro Sánchez said in his state of the nation address on Tuesday. The leader of the socialist government announced a special tax on banks and on the excess profits of energy companies to finance social housing, scholarships and free train tickets.

“I am fully aware of the daily difficulties people face. I know that you are earning less and less on your salary, that your shopping basket is becoming more and more expensive,” Spanish Prime Minister Pedro Sánchez said during his state of the nation address in parliament. The speech will last 1h25. Sánchez begins with a sober analysis of the economic situation, supplemented by detailed graphs, and comes to the conclusion that Spanish residents are not satisfied with the measures taken so far. At the end of the speech, there is a standing ovation and euphoric cheers from both ruling parties.

“I KNOW IT IS INCREASINGLY DIFFICULT TO MAKE ENDS MEET. I UNDERSTAND FEARS, FRUSTRATION AND ANGER. THESE ARE MY FEELINGS TOO,” SÁNCHEZ SAID.

But unlike most other heads of government in Europe, Sánchez’s compassion is not just an empty phrase – the Spanish Prime Minister announces a package that has it all. The coalition of Socialists and Podemos is going further than any other government in this crisis to cushion the cost of inflation.

Special tax for energy companies and large banks

The Spanish government will not only introduce a special tax on excess profits in the energy sector, but will also impose a “temporary and extraordinary” tax on big banks. The left-wing minority government already approved a special excess profit tax for energy companies in October 2021, but it only applied until June 2022. The new taxes are expected to apply until the end of 2023, generating a total of 7 billion euros during this period, which will go directly to social spending.

The government wants to do everything it can to “ease the burden on the middle class and working people,” Sanchez says. With this money, the government plans to make train travel free in Spain for local and medium-distance trains between September 1 and December 31, build 50,000 social housing units in Madrid and increase grants by 100 euros. studies for a million students.

“NO ONE SHOULD STOP STUDYING BECAUSE OF FINANCIAL PROBLEMS”, EMPHASIZES SÁNCHEZ.

“The profits come out of the consumer’s pocket.”

The government justifies the bank tax by the benefits that higher interest rates will bring to financial institutions. When deputies from the right-wing Vox party objected, Sánchez read the profit figures of the country’s main banks. In the direction of the electricity companies, the Prime Minister underlined even more categorically:

“These profits that are supposed to fall from the sky, they don’t fall from the sky: they come from consumers’ pockets.”

And that’s where they’re supposed to go back. The Spanish government already capped gas prices in May, significantly reducing electricity bills. But this was not enough to stem the effects of inflation on the Spanish population.

“We will not allow the suffering of the many to become the benefit of the few. We will defend the people and put the economy and the state at the service of the social majority.

This work is authorized under the Creative Common License. Original source/author: Patricia Huber. Scoop.me. https://scoop.me/spain-energy-companies/

© Scoop Media