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Sánchez and Iglesias stage deal and present budgets at ceremony in Moncloa

Posted: Tuesday October 27 2020 09:33

Pedro Sánchez and Pablo Iglesias presented the General Budgets 2021 project during a ceremony at 9:00 a.m. this morning in Moncloa a few hours after the conclusion of the agreement between the PSOE and United We Can, which yesterday afternoon, was up in the air after announcing the purple formation that negotiations over GMI and rent regulation were not over.

Although it will be the Minister of Finance, María Jesús Montero, who will report on the details at the press conference after the Council of Ministers approves the preliminary draft budget, the two have already put forward some details.

Iglesias, the second vice-president, assured that today a new era of economic policy is inaugurated in Spain: “It leaves behind a stage of cuts and this puts our country on the path to the recovery of social rights and strengthening of public services. ”

“Today, we are presenting to the Council of Ministers a budget proposal that will lead to a strengthening of public health and research and development in Spain which puts 6 billion euros at the service of ecological transition and the promotion of energy renewable “, pointed out.

Pensions, taxes and employment

He underlined the strengthening of active employment policies with an additional 2,000 million euros and the updating of pensions to the CPI, and non-contributory ones to double the CPI. “Unemployment benefits are linked to an index that had hardly been updated for a decade and is currently being updated.”

He also spoke of tax justice measures, “so that those who have the most contribute more, a first step in correcting the tax disadvantage. We have increased the corporate tax for the largest. We have increased the tax on the fortune of one point for more than 10 million. euros, or three points of personal income tax for income over 200,000 euros, among other measures, such as the reduction of deductions for pension schemes private “”.

Pedro Sánchez then intervened, who stressed that these are “progressive” Budgets. “They have three objectives: to rebuild what the coronavirus crisis has taken away from us, to secure economic growth on a more solid basis, and to strengthen our common heritage, our welfare state.”

In the Prime Minister’s opinion, they include the largest public investment in history. “Some accounts of 2018 are useless. From a conservative government, and in which it was not taken into account that a pandemic was going to occur. After the very hard blow of the pandemic, we could withdraw with cuts, or move forward with energy 239,765 million euros, 10.3% more than the previous ones, including the advance of the 27,000 million euros from the European plan, ”he added.

As explained, aid for trade, tourism, SMEs recorded an increase of 150%. The total of housing items increased by more than 369%. “We are going to spend € 3,064 million more on health, 151.4% more. One of the lessons we need to learn is to strengthen public health,” he said. It also highlighted increased investment in education, vocational training and research.

“These are inescapable and indispensable budgets and in our opinion, budgets that our country needs,” concluded Sánchez, who will now have to seek the support of the groups to move them forward in Congress.

IMV and rental

PSOE and United We Can have agreed to make several changes regarding the Minimum Living Income with regard to the requirements to apply for and receive the corresponding benefit:

· Take into account the income of the months that have elapsed during the current year in order to be able to grant the IMV. For the moment, this measure would only apply until 2021. With this agreement, this possibility is made permanent, in order to be able to respond to the situations that many families are facing. They won’t have to wait until the end of the year in which they lost their income to be able to apply for GMI, but they can do so at any time of the year.

· The years of independent life that those under 30 must prove to be entitled to this benefit are reduced from 3 to 2. Thus, young people who have lived alone for more than two years will be able to access assistance if their economic situation improves. deteriorated.

· The possibility that social services can prove some of the conditions of access to the IMV is established.

On the other hand, a law relating to the regulation of rental prices is envisaged. A proposal that is included in the coalition government agreement. The two formations agreed to regulate the control of rental income in the housing law, which is currently in prior public information on a proposal from the Ministry of Transport, Mobility and Urban Agenda.

The goal of the PSOE and United We Can is for the law to be brought before the Council of Ministers within a maximum of three months and presented to the Congress of Deputies within a maximum of four months. To prepare the text, they will benefit from the support of the autonomous communities, municipal councils, tenants’ unions and agents of the sector. They also want you to collect the following content:

Allow the Autonomous Communities and / or Town Halls to ensure that, on the basis of the Housing Rental Price Reference Index System developed by the Ministry of Transport, Mobility and the Urban Agenda, they can establish their price index according to an objective methodology and subject to periodic review.

· Validate the progress of the Autonomous Communities that have defined a rental price reference system, rationalizing the mechanisms that make its implementation possible.

Articulate mechanisms for these areas that can be completed by Local Administrations, in coordination with regional administrations, which can objectively and on the basis of technical criteria declare, temporarily and exceptionally, an urban area of ​​stressed market when this has happened. produces an excessive and sustained increase in rental income.

No guaranteed support

Coalition executive partners PSOE and United We Can have been holding meetings with various political groups for months to gain support, but to date they have not even guaranteed the votes of those who have. facilitated the investiture of Sánchez.

After learning that on Tuesday the project goes to the Council of Ministers, some, like the citizens – who participated in the negotiations – showed some surprise: “It seems that the government has decided to reach an agreement in the first place, so tomorrow we’ll find out the details, ”said Edmundo Bal, Congress training spokesperson.

Pablo Casado, the leader of the PP, also expressed his opinion during a ceremony in Madrid and listed his proposals: “We want there to be a reduction in corporate tax, below 20%. Eliminate inheritance tax, which is very important for the family business, and eliminate the tax on documented legal acts “.

He assured that they did not know the budgets: “They do not say that we support them, they say that we surrender. It is not partisan selfishness. Do not make me commune with more taxes, more more debt, no more deficits. We will not accept these solutions because they would be bad. ” .

PNV says they will wait and see “black and white” and that they will not be 100% like budgets.

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