The party issued a statement saying a committee will be formed to study offenses of youth wing members on a case-by-case basis and decide appropriate punishment, The Local.se reported Wednesday.
The youth wing, called the New Generations of the People's Party, has been involved in a number of recent scandals.
The photograph of several members performing Nazi-style salutes and posing with fascist flags went viral last week after a youth wing president in Valencia posted it on his Facebook page.
Last month the youth wing secretary for sports was photographed with a group of football supporters performing fascist salutes and holding a Spanish flag adorned with Nazi symbols.
An online daily published a photo of the youth wing's secretary general in Gandia performing a fascist salute in front of a Franco monument.