The presentation of the General State Budgets for 2023 is approaching and the pressure of United We Can intensifies while the PSOE gives maximum relevance to the Minister of Finance and Deputy Secretary General, María Jesús Montero, in the fiscal battle against the PP, to which accuses of a “fiscal vacuum” that harms basic public services. “If the State is covered, 55% of the VAT nourishes the financing of the autonomous communities. Does it mean that the PP communities are lining up? I have not seen anyone who has renounced that part of that financing go to their territory”, Montero responded to the words of Alberto Núñez Feijóo, who has reiterated that “the Government will keep the money from the Spanish and distribute it as they see fit. ”.
The escalation of rents and mortgages accentuates the tension between the partners of the Government for the Housing Law
Montero has dedicated a good part of his initial speech to stoking the PP for its position regarding taxes, which he has summed up in “cuts in the welfare state to open the doors to the privatization market.” “It was the Feijóo party that had the honor of having raised the VAT on the basket of basic products [ha contrapuesto Montero a la propuesta que hace ahora de reducir ese tipo a la cesta de la compra]. When they govern, they raise taxes and in opposition to any problem they raise tax cuts until they are emptied. It is the PP that in the same year approved the highest increase in personal income tax and VAT in our history and launched the shameful tax amnesty.
Selective tax increase and some reductions
The Minister of Finance has confirmed that there will be a selective increase in taxes coinciding with the approval of the General State Budgets, referring to a “package of fiscal measures” that will be announced “in the coming days”. Montero did not want to give details of that package beyond the fact that the adjustments to taxes that already exist will go in the budget project itself and that the new ones will be proposed through specific laws that will be processed urgently, as she has explained she. That will be the case of the new tax on large fortunes, although it is not the only tax increase that the Government is preparing, which rules out the PP’s proposal for a general reduction in VAT on basic products on the shopping list, although not the discarded for specific questions. The programmatic agreement includes a reduction in VAT for feminine hygiene products and that is one of the demands of United We Can.
Montero has downplayed the criticism that this Monday has come from the second vice president, Yolanda Díaz, by ensuring that the budget negotiation was still far away and demanding specific issues from the PSOE, such as the rise in personal income tax in the highest sections as well as the establishment of 15% for companies, among others. “Both formations of the Government know the importance of having Budgets in a timely manner. From my point of view, we will have new Budgets in a timely manner. I want to frame those words in the context that always occurs when a negotiation is being finalized”, said the head of the Treasury at a press conference in Ferraz in which she was convinced that PSOE and United We Can reach an agreement “ early”.
“You are aware of the difficulty of budget negotiations and the need to be prudent (…). You will not find me emphasizing differences but highlighting what unites us”, added Montero, who has assured that the fiscal measures “will be shared beyond having nuances”. “I don’t think the important thing is whether they are temporary or permanent,” he added about the criticism of United We Can of Pedro Sánchez’s intention that the tax on the rich be limited to the crisis derived from the war in Ukraine and not have a structural nature .
Opens the door to changes in the trans law
The number two of the PSOE has tried to avoid the great controversy that the party has carried out this weekend as a result of a conference on feminism organized by the Diputación de Valencia and in which prominent feminists of the PSOE participated, such as the former vice president Carmen Calvo, the Minister of Justice, Gabriela Bravo or Amelia Valcárcel, and in which opinions contrary to the trans law were expressed. The secretary of the LGTBI area of the PSOE, Víctor Gutiérrez, disavowed the speakers by assuring through Twitter from the official account that the women who participated “do not represent the position of the PSOE”, despite their militancy and holding prominent positions of responsibility. Added to the controversy has been an interview with Calvo in the newspaper El Mundo in which she assures that the trans law “can destroy the powerful equality legislation of our country”.
Montero has avoided disavowing Calvo and has pointed out that changes can be included in the parliamentary processing of the rule that came out of the Council of Ministers: “Any legislation that comes out of Congress we have to understand that in its process it receives enrichment. We are currently in that process.” What the deputy general secretary has also tried is to appease the war between sectors of the PSOE: “The party that is the guarantee of women’s rights and the advancement of trans people or the LGTBI group has the same acronym: they are called the Socialist Workers’ Party. Spanish”.