Calviño responds to Ayuso that Brussels advises against his promise to adjust personal income tax to inflation

The president of Madrid, Isabel Díaz Ayuso, has announced a tax reduction that consists of adjusting the regional section of personal income tax to inflation. And the economic vice president, Nadia Calviño, responds that Brussels advises against such measures. "The recommendations of the European Commission are very clear with respect to not putting these fiscal responsibility objectives at risk at this time and not addressing generalized fiscal modifications," she said at the entrance of a Eurogroup meeting in Brussels.

Calviño added: "From the Government of Spain we have a very clear position regarding the advisability of adopting selective tax cuts that can benefit citizens and the most vulnerable groups above all and that at this time allow us to respond in the way as effective as possible to the impact of war.

Ayuso has promised to deflate (adjust) from next year all income tax brackets (IRPF) to offset the effects of inflation on the purchasing power of "Madrilenians" and, especially, he said, of the " working middle class”, informs Carmen Moraga.

"Inflation is causing the working middle class not to make ends meet even if they have a job," Ayuso considered at her first informative breakfast after being named president of the Madrid PP this weekend. In her intervention, she has recalled that this is not only her idea but an economic model also launched by the new president of the PP, Alberto Núñez Feijóo, of whom she has highlighted her strong leadership.

Feijóo's proposal, however, was to lower rates only for incomes of less than 40,000 euros and not for all people as Ayuso will do, according to his announcement this Monday.

It is, he pointed out, to "adjust the tranches generously so that despite inflation no one loses purchasing power", which will mean, he says, a saving of "around 300 million euros". In addition to his commitment to continue lowering taxesAyuso has committed to placing the waiting list in public hospitals in the Community of Madrid at a maximum of 30 days.

Addendum to recovery plan to include credits

Spain will present an addendum to the recovery plan starting in the summer. This was announced this Monday by Nadia Calviño: “We will present an addendum to the recovery plan, incorporating any additional transfers, mobilizing credits [70.000 millones que aún no se han pedido] to be able to influence and reinforce all those programs that go precisely in the direction of reinforcing Europe's strategic autonomy in the energy field, in the technological field, priorities that had already been identified by the Spanish Government and that were included in the Plan of Recovery”.

Calviño explained: “At the end of June we will have the final data on the allocation of the recovery and resilience mechanism in the different Member States. And, once we have the definitive allocation in the case of Spain, we will prepare that addendum to present it in the second part of the year, in order to cover the possible additional transfers, mobilize the credits and also cover that new section of REPowerEU [plan de Bruselas para la desconexión energética de Rusia] of energy efficiency and strategic autonomy in the energy field. We will present it in the second part of the year, after a preparation work for this second phase of investments of the Recovery Plan”.

The economic vice president has insisted that “Spain will mobilize 100% of the assigned credits” when the corresponding addendum is presented: “In the first phase of the plan we presented the request for the transfers, an amount of 60,000 million euros. And in this second phase we are going to mobilize both any additional transfer that Spain is assigned and all the credits, and also activate the recommended investments within this REPowerEU communication, which the European Commission presented last week”.

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