Pedro Sanchez

THE PSOE have called for an 8% ‘social justice’ tax on Spain’s banks in a bid to rescue the country’s faltering pensions system.

Party leader Pedro Sánchez announced the €1 billion measure—which was swiftly rejected by the banking sector—in Madrid yesterday.

Sánchez would also like to see a financial transaction tax put in place to collect another several hundred million euros.

But banks fear what is being sold as a temporary measure would soon become permanent given the long-term problems plaguing the pensions system.

PSOE spokesman Manuel Escuerdo was asked if the idea was about ‘class revenge’ following the 2008 crash, to which he replied that it was more about ‘social justice’.


The Socialists say the government’s labour reforms have not had an effect on social security income—with a fall in inflation adjusted income compared to 2011—despite a reduction in unemployment figures.

“We’re worried because the social security deficit has become structural”, said Escudero, adding that the party would not increase taxes on ‘the working clases’.

The governing Popular Party rejected the PSOE’s new plan, calling it ‘a lie and demagoguery’.

Economy Minister Luis de Guindos said growth, not higher taxes, were the solution to the pensions problem.