Sánchez stages a turn to the left with taxes on electricity and banking and more direct aid

He compares the opposition to "healers" for blaming inflation and blames "media powers"

He admits that no one has a sure answer of what will happen and "nothing can be ruled out" if Putin cuts the gas

MADRID, 12 Jul. (EUROPA PRESS) -

The President of the Government, Pedro Sánchez, has staged a turn to the left in his first speech in the Debate on the State of the Nation, this Tuesday in Congress, where he has announced new taxes on energy companies and banks, to whom He has asked to contribute with his benefits to the effects that inflation is generating in the citizenry.

On the other hand, Sánchez has compared the opposition with the "healers" for blaming his management at the head of the Executive for the high inflation that Spain suffers. For this reason, he has criticized that he is singled out for "ideological prejudices" through "media powers."

He has argued that it is "important" to know "the causes of the diagnosis" of inflation, criticizing that there are those who intend to take advantage of the current situation: "The healer does not intend to cure, he wants to benefit", he indicated, before referring to the rise of the SMI or the promotion of renewable energies as causes that these people wield, who assure that with another Executive, inflation would not have risen.

The head of the Executive has indicated that the tax on "the dominant groups" of the electricity, gas and oil sector will be in force during 2023 and 2024 and will seek to collect 2,000 million euros a year from the extraordinary profits of these companies in 2022 and 2023.

During his speech, Sánchez announced a new tax aimed at "large financial institutions that have already begun to benefit from the rise in interest rates." This exceptional and temporary tax, he explained, will last for two years and will seek to collect 1,500 million each year.

On the other hand, the president has transferred new direct aid such as the 100% discount on subscriptions for several trips for Cercanías, Rodalies and medium-distance trains operated by Renfe, for which they will become free from September 1 of this year until December 31.

This represents a deepening of a measure already announced, included in the new anti-crisis package, which included a 50% discount on monthly subscriptions. Now it becomes completely free and is also open to other types of tickets for more than one trip.

"I am going to work my ass off to defend the country's working middle class," said the president during his opening speech, in which he made it clear that rising prices is the main problem facing society Spanish and therefore the Government will dedicate all its efforts to try to alleviate its effects.

Thus, he has recognized that "the great challenge" that Spain has is "inflation", which he has described as a "serious illness" for the economy. Sánchez has stressed that "it impoverishes everyone" and "affects the most vulnerable groups."

"I am fully aware of the daily difficulties of most people. I know that the salary is getting less and less, that it is difficult to make ends meet, that the shopping basket is becoming more and more expensive. I take responsibility", assumed by the president during his speech.

However, Pedro Sánchez has warned that there is no "magic solution" to knock down inflation, although he has maintained that there are many things to do and that the Government is going "for all". Along the same lines, he has pointed out that one cannot "predict the future", although the situation in the coming months will depend to a large extent on the evolution of the war in Ukraine.

Along the same lines, he wanted to make it clear that inflation is not a disease "endemic to our country" but rather that it affects the entire planet and specifically, as he has indicated, it is increasing sharply in 75% of developed economies.

In this sense, he has indicated that the only truth is that no one has a sure answer to what is going to happen soon and there are many unknowns, which will depend on how long the war lasts and how the economies of China, the United States and Germany evolve.

"We cannot rule anything out," Sánchez warned, especially if the president of Russia, Vladimir Putin, decides to cut off gas to Europe and the continent may suffer, therefore, energy restrictions that impact the European and Spanish economies. However, he has mentioned "projections" by experts who predict that by the end of the year inflation will be around 6 percent.

During his speech, the Chief Executive also announced that the 'Operation Camp' will be unblocked "immediately" for the construction of up to 12,000 homes in Madrid, of which 60% will be public.

The president has also announced a supplementary scholarship of 100 euros per month for young people over 16 years of age who are currently receiving a scholarship. Thus, he has indicated that around one million students will receive it between September and December with the aim that no one abandon their studies for economic reasons.

Sánchez has emphasized that his government is seeking to get out of this crisis in a way that is opposite to how the right did when it governed in the previous financial crisis of 2008. Thus, he has indicated that at that time society suffered "precariousness and uncertainty" due to the "greed of a few" and the blindness of the economic "supposed orthodoxy", which, as he has warned, "sounds again in the conservative circles" which, as he has indicated, demand sacrifices for everyone except for the privileged minority they represent .