January 18, 2021

The Government assumes the economic policy of Podemos

Calviño does not see "conflict" with United We can in economic matters. The experience of the agreements between socialists and podemistas in several autonomies opens the door to more taxes, more expenses and more interventionism

The “embrace pact” has filled most of the country's economic, financial and business sectors with uncertainty, who fear a populist turn to the policies that a PSOE-Podemos Government can carry out if it finally moves forward. Several ministers, mainly Nadia Calviño, have been multiplying in various forums and meetings for several weeks in a campaign of general reassurance. But they don't seem to have achieved their purpose. Especially according to Calviño's latest statements. The acting Minister of Economy and Business said yesterday that she does not see "conflict with economic policy" raised by United We can and just remembered the points of the pre-agreement signed by the President of the Acting Government, Pedro Sánchez, and the leader Podemita, Pablo Iglesias: budgetary discipline, deficit and debt reduction, and social policies. However, if we follow the example of what they have done in the autonomous communities where they already govern together, the reality can be very different. Wave of tax increases, control of the housing market, green fees with the excuse of fighting against climate change, income tax increase to higher incomes, increases in taxes on Heritage and Societies, new green taxes, tourist taxes and, above all, exponential growth of spending. That is the panorama that they are now betting on in the autonomies under their control.

Record fiscal pressure

The intention of Pedro Sánchez is that the fiscal pressure goes from 35.1% to 37.3% of GDP, which represents an increase of more than 26,000 million euros and the highest fiscal pressure in Spanish history, even above the record set by the Government of Rodríguez Zapatero. And not only will it do so with the increase in direct tax proposals – the aforementioned Societies, Patrimony, Personal Income Tax [IRPF] of the highest incomes, Successions … – but the blow to the pocket will do so in the indirect taxes and green fees , in addition to new assessments such as Google and Tobin rates. With these indirect taxes, it expects an increase in revenue close to 5,700 million. This greater fiscal pressure is a principle shared by both formations and “the best way to articulate all these objectives,” he said yesterday in Barcelona, ​​in an act at the Supercomputing Center, in which he defended the economic policy developed by the Socialist Government since year and a half. "We have a very clear agenda based on fiscal responsibility, social sensitivity and structural reforms." Precisely on this last point, he said that "there is no time to lose" to launch an agenda of reforms that will address future challenges and investments such as climate change, digitalization or education, and that, said the minister, will be in Government economic policy. What they still don't explain is how they will do it. Because after the announcement of the agreement they did not clearly outline the basic lines of their program, but the “Botanic Pact” in Valencia or the “Bellver Pact” in the Balearic Islands have already marked the way forward: more fiscal pressure, more spending and greater interventionism, the three legs of the bank of social-communist politics.


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