Just a couple of months ago the prospect that the 2025 General State Budgets could go ahead was practically zero. Junts had overturned the path of deficit raised by the Government, had announced its vote against the second attempt by Sánchez’s party to approve it, thereby creating a scenario of instability that made the legislature falter.
However, the PSOE made a decision that caused a change in the scenario. Sánchez’s men withdrew the deficit path hours before the vote in Congress took place and They chose to stop the process of preparing the accounts until Junts and ERC held their conferences this fall to renew their directions and roadmaps.
The legislature seemed to take a breath then and the perspective of the Budgets returned to the track of the possible, given that, even, Puigdemont’s party and the socialists began to renegotiate a new deficit path. This week the scenario has changed again and the accounts once again seem like an unrealistic aspiration for the Executive.
However, this time it was not the complex relationship with Junts that triggered this change, but rather the ideological gaps that exist between the PSOE and the parties of the so-called alternative left. Since last weekend, Sánchez has two new fronts on the budget horizonwith Sumar and with Podemos.
In the first case, the PSOE and Sumar began negotiating the public accounts in September and the conversations took place normally and made some progress. But this weekend, Yolanda Díaz’s team took the negotiation out of the realm of discretion and revealed that the dialogue with her partner has been paralyzed by the differences over tax reform.
The battle for tax reform within the Government
In Sumar they assure that the PSOE would not be guaranteeing the permanence of the taxes on banks and large electricity companiestwo taxes that have allowed us to collect, recall from this space, 2.9 billion “to finance public services and citizen protection policies.”
In mid-September, those of Díaz presented a Budget negotiation document with a tax plan which, according to what they reported, allowed raise up to 27,000 million.
Sumar sent a fiscal plan to the PSOE with the objective of raising 27,000 million
In addition to taxes on banks and energy companies, a higher tax on so-called luxury goods was proposed, the end of the tax exemption VAT for private health and education, greater tax pressure on products such as tobaccoand a reform of the Income Tax and of Corporate Tax to make them more progressive.
“Today we are far away and I am clear: Sumar’s 27 votes will not be counted with a tax proposal that is regressive,” Yolanda Díaz warned on Monday.
Also this weekend there was a movement by Podemos, which repositioned itself on the political map during their Fall University celebration. In this forum, the general secretary, Ione Belarra, announced that her formation would put two conditions for the PSOE in the budget negotiation: the breaking of relations with Israel and the intervention of the rental market to lower prices by 40%.
Break with Israel and lower rents by law
The organization’s movement did not stop there, and on Monday Belarra herself announced that the party submitted to the consultation of his militancy make these two claims conditions sine qua non to support the accounts.
If the militancy endorses it, Podemos’s two demands will become red lines in the PGE negotiation
If the Podemos bases endorse it, the formation will begin conversations with the PSOE with two red lines from the outset that they will be immovable and, therefore, a priori the socialists should assume the breaking of relations with Israel and the rental price intervention if they want to move the Budgets forward.
The change in expectations that had been generated at the return of the summer with the slowdown of the budget process by the PSOE has taken a new turn that increases the tension of the negotiations, this time due to the ideological gaps between the socialists and the left. alternative.
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