“The economic cycle will have to be modulated”

Tensions within the coalition government overcome Given the imminent budget negotiation, the Executive will get to work to prepare the public accounts for 2021. The Minister of Finance, María Jesús Montero, will sit down this afternoon with the Secretary of State for Social Rights, Nacho Álvarez, to give the starting gun to the preparation of the draft budget project on which negotiations will be opened with the rest of the political formations. “I hope that Ciudadanos and ERC are in a position to reach agreements,” said the Government spokesperson, who thanked Inés Arrimadas for the position shown so far. Montero has assured that the budgets will be inspired by the programmatic agreement signed by PSOE and United We Can – in axes such as the ecological transition, the digital one, the feminist and cohesion agenda – but has cooled the tax reform with tax increases that appears in that document.

Sánchez and Iglesias put their differences aside and agree in Moncloa on a joint plan to negotiate the Budgets

Sánchez and Iglesias put their differences aside and agree in Moncloa on a joint plan to negotiate the Budgets

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“Taxation is inspired by the programmatic agreement, but it will have to be modulated at the time and the economic cycle. We cannot be blind to the economic situation – Montero has expressed -. We have everything to do throughout the legislature.” Pedro Sánchez therefore intends to leave the bulk of the tax reform later. The Minister of Finance has spoken in the press conference after the Council of Ministers of “two speeds”: “One that accompanies recovery projects and throughout the legislature that should allow us to review the fiscal figures”. Even so, she has not wanted to specify if there will be any increase such as placing the corporate tax at 15%: “We are going to address it as a nuclear part of the negotiation with United We Can and the rest of the forces. ”

In the Government they are aware that budget negotiation will not be easy from the inside or with the rest of external agents, but government sources admit that by parking the tax increase they facilitate the support of Citizens, which is the way they see most feasible in the socialist part given the position that ERC maintains due to the possible advancement of the Catalan elections. “I am convinced that there is a meeting point between all,” says Montero about the mutual incompatibility that United We and Citizens have publicly shown. However,

“If ERC wants a dialogue table to convince Torra”

But Sánchez does not want to wait for the electoral calendar in Catalonia and will start the negotiation of the budgets immediately, with the aim of taking them to Congress “in a timely manner” before October 1. However, The Government has also made it clear in recent dates that it will not register the project until it has the support tied up.

Montero has sent a message to both the PP and ERC by urging them to communicate what their will is regarding the negotiation, but demanding that they do not pose impossible conditions. “That is what the negotiation consists of: each one of us expresses our priorities and then we will have to modulate depending on whether the proposals are viable. It is a bad joke when some put proposals on the table that they know are unviable and I am not just referring to the PP “, has warned.

ERC put as a condition sine qua non that the dialogue table between the Government and the Generalitat meet to negotiate the public accounts. “If ERC believes that the dialogue table that convinces Mr. Torra should meet,” the Government spokesperson has sentenced on the refusal of the Catalan president to meet that body despite the disposition shown by the Executive after the lifting of the state of alarm.


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