The Spanish Council of Ministers has recently finalized a series of urgent economic, tax, transport, and social security measures, extending various initiatives aimed at supporting vulnerable populations. As part of these efforts, the government has confirmed the continuation of a prohibition against discontinuing essential water, electricity, and gas supplies for at-risk consumers. Furthermore, personal income tax deductions for electric vehicle purchases have been extended.
During a press conference at Moncloa Palace, President Pedro Sánchez provided a comprehensive review of the progress made throughout the political year, emphasizing the government’s commitment to enhancing the quality of life for citizens, safeguarding purchasing power, reinforcing the welfare system, and advancing public services.
Pension Revaluation for 2025 One key development is the confirmed revaluation of pensions within the Social Security system, state pensions, and other social benefits for 2025. Effective from January 1, these adjustments will raise contributory pensions by 2.8%, positively affecting over 12 million individuals. President Sánchez noted that ensuring the purchasing power of the elderly and workers remains a top priority for the government. He highlighted that the average retirement pension, which increased by €734 in 2024, will see further enhancements this year, stating, “It is crucial that the wealth generated by the economy benefits all citizens—those who work, those who have worked, and those preparing to join the workforce.” The new adjustments will equate to an additional annual benefit of €600 for those receiving an average retirement pension.
Moreover, the Council approved a substantial 6% increase in minimum pensions, while non-contributory pensions and the Minimum Basic Income will see a significant rise of 9%. Additionally, the supplement aimed at reducing the gender gap will be increased by 8.1%, bringing it to €35.9 per month for each dependent child.
Extended Public Transport Discounts, The government has also decided to prolong discounts of up to 100% on land public transport for regular users, a measure set to last until June 30, 2025. This will apply to free season tickets for various services, including Cercanías, Rodalíes, Media Distancia Convencional, and state bus lines. The agreement also includes direct financial aid to regional and local authorities to help lower the cost of tickets for urban and metropolitan public transportation by at least 50%. For the first time, public bicycle rental services will be included in these subsidies, receiving a 50% discount on season tickets.
Looking ahead, President Sánchez indicated that a new public transport discount system is being developed, which will take effect on July 1, 2025. This initiative aims to simplify transport options, offering a unified Cercanías ticket priced at €20 per month, free travel for children under 15, and substantial discounts on season tickets for young people, alongside new incentives promoting bicycle use. Sánchez acknowledged a notable 13% increase in public transport usage, attributing this rise to improved services and the ongoing commitment to subsidy initiatives. He highlighted Spain’s impressive standing as the second-largest country globally for high-speed rail infrastructure, surpassing both Germany and Italy combined.
Social Protection Measures, In further efforts to shield vulnerable consumers, the government has reiterated its intention to uphold the ban on cutting off essential utilities. This initiative, implemented in 2021, will remain effective until December 31, 2025. The government has also decided to extend the social voucher for electricity for vulnerable and severely vulnerable consumers, leading to a final discount of 35% and 50%, respectively, by 2026.
The government is committed to supporting sustainable mobility, extending the Moves III program—which promotes the acquisition of electric and hydrogen fuel cell vehicles—and charging infrastructure. Personal income tax deductions for electric vehicle purchases will continue through December 31, 2025, along with deductions of up to 60% for energy efficiency improvements in homes.
Introduction of a Temporary Energy Levy In a significant move, the Council of Ministers has enacted a Royal Decree-Law instituting a temporary energy tax for 2025. This levy will apply to certain companies considered major players in the energy sector. President Sánchez explained that this regulation introduces a tax incentive designed to support crucial investments necessary for ecological transition and decarbonization efforts. “We are requiring greater contributions from energy companies while steadfastly pursuing our decarbonization roadmap and fostering vital industrial projects like green hydrogen production,” he stated.
Honoring Cultural Excellence During his address, President Sánchez underscored the cultural sector’s importance, announcing the posthumous awarding of the Grand Cross of Isabel La Católica to the distinguished actress Marisa Paredes, whose contributions he characterized as “extraordinary.”
Additionally, the Council approved the awarding of 38 Gold Medals for Fine Arts for 2024 to notable individuals and organizations in the creative sphere, including renowned figures such as singer Robe Iniesta, actress Carmen Machi, and author Elvira Lindo. “These artists enrich our country and our lives,” Sánchez concluded.
This latest set of measures represents a determined effort by the Spanish government to ensure that economic prosperity reaches all segments of society, reinforcing its commitment to social equity and environmental sustainability.
