“Squaring this Sudoku was not easy.” From the Government of Pedro Sanchez They had been making it clear since last week that the tax reform approved this Thursday was very complex. Perhaps the most difficult negotiation that the progressive coalition of PSOE and Sumar has had to face for a year. Convincing his partners on the left and right on issues as ideological as taxes was no small task. But finally, a broad pact was reached that includes a large part of the groups’ objectives.
The next negotiating goal is the General State Budgets (PGE)as they already point out in the Executive. First, in any case, the spending ceiling has to be moved forward. Optimism is even greater today than a few days ago.
“If we have been able to achieve this, with the accounts we will be so too,” said socialist sources, who did not hide their victorious feeling after the announcement of the pact with Podemos, the last piece that remained to fit into the parliamentary puzzle. “These types of agreements help, without a doubt,” pointed out Government sources in view of the PGE.
Among the tax measures that have gone ahead this Thursday are a minimum tax of 15% on multinationals (obligated by the European Union), an increase of two points – from 28% to 30% – in the taxation of personal income tax on higher incomesa reduction tax on SMEsa tax reduction for artists or an increase in taxes on tobacco companies. The VAT privilege will also end for hydrocarbons and the bank tax in the terms agreed by the Government with Esquerra Republicana de Catalunya, EH Bildu and the Galician Nationalist Bloc, that is, increasing the highest tax bracket.
However, the measure that sought to end the tax advantages of the companies has been left out. Listed Real Estate Investment Companies (SOCIMI), the tax increase on insurance private toiletsto the diesel ―an amendment to equalize the tax burden on gasoline and diesel that was left Viva and, finally, it has declined― or to luxury. Several of these measures, which have remained in the pipeline, were part of a agreement between PSOE and Sumar.
That the day had meant a political victory was reflected by Sánchez himself, who appeared briefly before the media after the plenary session to celebrate the agreement. Also, of course, to deny the accusations of Victor De Aldamathe other axis that structured the day.
“The Government has achieved an important reform of the tax system. It is very important to reinforce public services“, he highlighted. Sánchez has also linked the DANA tragedy with the importance of having these public services. “The Government is satisfied and grateful to the parliamentary groups for the negotiation effort,” he added.
The leader of the Executive has valued the criteria of “tax justice” included in the reform since “more effort” will be required from large corporations. Likewise, he was pleased that this initiative advances the agreement with Brussels for future disbursements of European funds.
“We have an agreement, fortunately for the country, which will allow our tax system to be more fair, redistributive, and also have resources that allow us to protect the Welfare State,” said the first vice president and Minister of Finance. Maria Jesus Monteroone of the main protagonists of recent days.
From their Ministry they consider that the negotiating process, despite certain criticisms from left-wing groups, has been correct. The sources consulted highlight that they first spoke with the left-wing parties to show them the package of measures that they were going to agree on with PNV and Junts.
Agreement with duties
It is something that they deny all sources consulted among Sánchez’s allies. In fact, one of the main criticisms that come from ERC, EH Bildu or Podemos is, precisely, that the Ministry of Finance decided to negotiate before with their allies further to the right than with them. In any case, although practically at the last minute, there was agreement and a good part of the package was approved.
The element that has ensured the Government’s parliamentary victory has been the agreement reached with Podemos, in which the PSOE undertakes to create a negotiating table to promote a permanent tax on energy companies and to move forward with the hope that it will also end up convincing Junts. An authoritative voice from the purple ones slips that “there is an agreement signed with the PSOE.”
It is not trivial. We must start from the basis that Podemos asked the PSOE for guarantees that the agreement reached by the socialists with ERC, EH Bildu and BNG on Monday, which announced an extension of the tax on electricity companies, would not remain a dead letter. The truth is that it is impossible for the PSOE to be able to guarantee one hundred percent that Junts will not torpedo its plans – something that sources from among the sovereignist left of the Chamber point out under their breath – but in Podemos they insist that, a week ago, ” It seemed impossible to talk about a tax on energy companies and now, thanks to this agreement, we have a commitment that there will be“.
Sources of EH Bildu They convey the importance that the agreement that PSOE and Podemos have reached also includes approving a Royal Decree-Law if the negotiating table does not produce the expected results. This decree is precisely what ERC, EH Bildu and BNG agreed with the PSOE. In Podemos, in any case, they emphasize the importance of having convinced the PSOE, in a negotiation that began with Maria Jesus Montero and in which he has participated, since this Wednesday, Felix Bolañosto make the tax permanent.
However, the Government has approved a fiscal package that, although it’s not all complete that the Treasury would have wanted, is important to give stability to the legislature and begin to look towards the Budgets. Several parliamentary sources agree with this, also among the allies. Nevertheless, The Executive has duties and they are not easy.
For the tax on energy companies he needs Junts and, although Miriam Nogueras He has not refused, before the media, to be at that negotiating table, his training is tough to crack, as is constantly demonstrated in Congress. In any case, both in public and in private, the post-convergent insist that before issuing an opinion on any measure or proposal, They study it in detail. Also, they say, they will do it in this case. Be that as it may, what was beginning to be seen as a virulent parliamentary defeat of the Executive with uncertain consequences has become the first step in the negotiation of the Budgets.
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