Spanish Prime Minister Pedro Sánchez today. | CHEMA MOYA

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Spain will slap temporary taxes on power companies and banks that should generate 7 billion euros ($7.02 billion) in revenues in 2023-2024 and help Spaniards cope with soaring energy prices and inflation, Prime Minister Pedro Sanchez said today.

The government expects to rake in 2 billion euros a year in 2023 and 2024 from a tax on extraordinary profits of power utilities made this year and next, while the tax on financial institutions will bring in 1.5 billion euros in revenues a year, he told parliament in a state of the nation speech.

Shares of banks like Sabadell and Caixabank fell as much as 8% following the announcement.
Sanchez said inflation, caused to a large extent by Russia's invasion of Ukraine, was the biggest challenge for Spain, likening it to "a serious illness of our economy that impoverishes everyone, especially the most vulnerable groups".

Sanchez also announced 100 euros a month in complementary scholarships for students older than 16 years who already receive scholarships, and free multiple-trip tickets for suburban and medium-distance trains between September and end- December.

He also gave the green light to a major real state development plan which plans to build 12,000 housing units in Madrid.