The President of the Government, Pedro Sánchez, revealed on Wednesday his intention to raise taxes for those who already have enough wealth to live several lives. At an event held at the Cervantes Institute, where he inaugurated the new political course, Sánchez announced that they will be implemented “new measures to limit the excessive privileges of certain elites” who are currently enjoying excessive profits.
The head of the Executive stressed that the objective of these measures It is not about harming the rich, but about protecting the middle and working classes from a system that remains profoundly unjust..
Sánchez made these statements in the presence of almost his entire cabinet and the union leaders of CCOO and UGT, Unai Sordo and Pepe Álvarez. “We are going to tax those who already have enough money in the bank to live a hundred lives. We will do it, I insist, not to harm the millionaires but to to protect the middle and working classes from a system that continues to be extraordinarily unjust“. For Sánchez, “regardless of what some people think, Spain will be a better country if there are more electric cars, made in Spain, more public buses and, therefore, more public transport and fewer Lamborghinis.”
The head of the Executive also assured that a more progressive taxation will be one of the three main axes that the Government will develop in economic matters in this new political direction, with taxes “that will increase more for those who have the most.”
New spending ceiling and PGE 2025
Sánchez announced that he would approve a new spending ceiling and deficit trajectory, essential to begin the process of presenting the General State Budget (PGE) for 2025, with the aim of presenting it again to the Lower House, after the rejection in July of this rule by Junts, the Popular Party and Vox on July 16. “Our goal is to approve General State Budgets that bear the DNA, the mark, the seal of this progressive coalition Government.”
These targets will be submitted to the vote of Congress and, if approved, will be sent to the Senate. If the Upper House rejects them, Congress would have the possibility of canceling this veto. It should be noted that the stability path rejected in July proposed to reduce the public deficit to 2.5% of GDP in 2025, 2.1% in 2026 and 1.8% in 2027, setting less demanding targets for the autonomous communities and municipalities, with a deficit of -0.1% of GDP and the balance over the entire period, respectively.
The spending rule, which is a key indicator of the new European budget rules, was set at 3.2% for 2025, 3.3% for 2026 and 3.4% for 2027, which would help reduce public debt to 103.6% of GDP, 101.8% and 99.7%, respectively. This deficit trajectory was based on economic growth forecasts of 2.4% for this year, 2.2% in 2025 and 2% in 2026 and 2027, with an unemployment rate that, for last year, would be below 9%.
The ceiling for non-financial expenditure for next year, debated but not voted on, was set at a record level of 195.353 million euros, 3.2% more than the previous year. This figure amounts to 199.171 million, of which 3.818 million are from European funds.
Sánchez insisted that his executive will work for “ambitious social budgets, which consolidate and expand public investments” made over the last six years.
In the same vein, the Minister of Economy, Commerce and Business, Carlos Body, has publicly announced that the government is considering reintroducing the same budgetary stability objectives for all public administrations, stating that it is a “very sensible and positive” proposal for the communities. . the autonomous and municipal councils. And the executive intends to promote a new “fairer” financing system in which all autonomous communities will receive more resources.
