May 13, 2021

Entrepreneurs warn Sánchez that raising business taxes would be a “mistake”




The Prime Minister, Pedro Sánchez, has signed in the gardens of the Moncloa palace the “Pact for economic and employment recovery” with the general secretaries of CC.OO. and UGT, Unai Sordo and Pepe Álvarez, and the CEOE and Cepyme presidents, Antonio Garamendi and Gerardo Cuerva, respectively.

The CEOE and Cepyme presidents have taken advantage of their respective speeches to express their rejection of the Government’s fiscal plans, since they could harm economic growth. In this sense, Cuerva has warned Sánchez that raising taxes on large companies would be a “mistake”. “The rise to large companies also affects small ones and can hinder economic growth and investment,” said Cuerva, who insisted that now is the time to “believe in the company and bet on it” because this way You will also bet on employment.

From CEOE, Garamendi has stated that now is not the time to open the fiscal debate and he stressed that what must be done is to combat the underground economy, because “a lot of millions” would come from there.

The signing ceremony was also attended by the Government, the four vice presidents (Carmen Calvo, Pablo Iglesias, Nadia Calviño and Teresa Ribera), and the finance ministers, María Jesús Montero; Work, Yolanda Díaz; Industry, Commerce and Tourism, Reyes Maroto, and Inclusion, Social Security and Migrations, José Luis Escrivá.

Reincorporate workers

The main measures included in the agreement to achieve a “green, digital and inclusive economy”, they are, according to Pedro Sánchez:

-Push the reincorporation to the companies of the workers affected by the ERTE derived from the Covid-19 crisis, prioritizing capacity adjustments in working hours and not in jobs. Likewise, companies will promote the re-employment of workers with temporary contracts whose employment relationship ended during the crisis when circumstances so allow, promoting indefinite hiring as far as possible.

-Develop effective mechanisms for training and retraining of workers facing their training, particularly in the digital and technological field, to access the jobs that are created and their relocation in the same or another company or sector, especially in those sectors affected by an accelerated conversion or transformation process by the Covid-19.

-To establish a suitable framework for remote work and the adaptability of the working day, in order to increase the productivity of companies, while improving the situation of workers, family reconciliation, and the ability to adapt to the demands of the new economy.

-Develop an adequate framework of shared contribution for ERTE for economic, technical, organizational and production reasons, in order to consolidate its role in adapting our economy, in line with other European countries, protecting the productive fabric, employment and workers within a framework of greater legal security, less vulnerability and volatility and greater contribution to economic stability

A pact for the industry that allows the country its essential reindustrialization, that diversifies, balances and modernizes its productive structure, and promoting the strategic sectors that make our economy more resilient.

Boost the “green” transition of all productive sectors and the circular economy, betting on public-private collaboration and investment in industry, agriculture and competitive services that contribute to the ecological transition and generate quality employment, with the aim of leaving no one behind back in the modernization of the country.

Boost the digitization of the economy, the deployment of digital capabilities throughout the entire working life and the incorporation of new technologies to companies, particularly SMEs.

Modernizing active employment policies in order to redirect the corresponding resources towards an effective system of personalized support, training and retraining of workers, and to deploy efficient mechanisms for aligning supply and demand in the labor market.

Support the development of the social economy and the care system, in order to strengthen and improve our welfare state.

Support for the self-employed, both in overcoming the economic consequences of the pandemic and in the reactivation of their professional activities.

Modernization of the labor framework in order to minimize the impact on employment of future crises.

-Secure the strengthening of public services at the different levels of the Administration, especially in the health service and the dependency system, as well as in the public employment service, improving the quality of jobs and existing public-private coordination and collaboration mechanisms

-Address the necessary adaptations to reinforce and guarantee the long-term sustainability and sufficiency of the public pension system, protectingthus its purchasing power.

-Promoting effective measures to bring up the underground economy, fighting against fraud, precariousness and tax evasion.

-Ractivate, immediately, the social dialogue tables already established and incorporate measures aimed at job creation.

The agreement includes various measures approved today in the Council of Ministers, such as the launch of a line of ICO guarantees for an amount of 40,000 million euros to promote new business investment projects and creates a fund of 10,000 million to support the solvency of strategic companies. In addition, it approves the “Renove 2020” plan for the acquisition of vehicles, applicable to purchases since June 16.


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