The Government and the PP oppose their two models to get out of the crisis

If the State Budgets for 2022 are to be those of “goodbye to a crisis and the beginning of a new political cycle “, according to the Minister of Finance, María Jesús Montero in Congress, the entire debate on the bill turned into a clash between the two different models proposed by the Government and the PP to leave behind the economic consequences caused by the pandemic.

The leader of the popular, Pablo Casado, condemned the “waste” of the Budget project and defended a tax cut of 10 billion euros. The president of the Conservatives criticized the increase in the deficit and the debt that, from his point of view, the Socialists always provoke when they govern. “Withdraw the Budgets because otherwise the PP will have to come to fix the ruin of such a disastrous government,” he told the minister. For his part, Montero asked Casado about the spending cuts that his tax cut would cause and accused him of trying to resuscitate the “austericide” recipe that the Mariano Rajoy government applied from 2012 to face the debt crisis at that time. abounding in inequality.

The clash between the Government and the opposition took place in the first session of the plenary session of Congress to debate the seven total amendments that many other parliamentary groups have presented against the draft Budgets for 2022. If there are no last minute surprises, none of the seven amendments tabled by PP, Vox, Ciudadanos, JxCat, CC, CUP and Foro Asturias will go ahead in the vote this Thursday. The budget pacts reached by the coalition government (PSOE and United We Can) with ERC and PNV and the refusal of other regular partners to veto the Accounts will allow the Executive to overcome this first procedure. Afterwards, the Budgets will continue to be analyzed in committees and the groups will be able to try to introduce partial amendments.

Expenses and income

In defining her own model to face the way out of the crisis, the Minister of Finance defended the bill that entails the highest public spending in history, with the help of more than 26,000 million euros of European funds. Montero also highlighted that these Accounts support “the highest figure in history” in social spending, as well as a record level of public investment (40,000 million euros). And in the income chapter, the bill incorporates a total tax increase amounting to about 500 million euros, waiting for the expert committee to deliver its report for a tax reform that should allow raising the tax burden from February. in the final stretch of the legislature.

In particular, the Budgets project includes as news a minimum effective rate of 15% in corporate tax for companies with a turnover of more than 20 million and for groups. The maximum contribution to individual pension plans and it rises from 8,000 to 8,500 in the case of employment plans. In addition, for the self-employed, the current limits that allow taxation for the module system in income tax and VAT.

Faced with this model, Casado defended a tax cut of 10 billion euros (which includes the abolition of regional taxes on assets, property transfers and inheritance and donations), accompanied by a spending cut (which the popular ones link with items of “waste” and “duplicities”) and support measures for families. The leader also demanded that the Government make known the Operating Agreement (‘Operational Agreement’), the contract to be signed with Brussels to control the reforms and European funds. If not, he warned, he will go to the European Commission to request it. In this document the indicators will be detailed to be able to monitor the commitments made and the PP believes that it would be useful to “supervise” the Executive.

“It is not yet time to make adjustment plans,” Montero replied. “We cannot mortgage growth,” he added. The Minister of Finance saw in Casado “a caricature of himself“, for drawing a Spain” black all the time “.

Vox insults

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After Casado it was the turn of Vox. Iván Espinosa de los Monteros stressed that this Executive “deteriorates the productive fabric” and “weighs on competitiveness.” During the minister’s reply, an ultra deputy called Montero an “asshole”. Ana Pastor (PP), who as vice president of the Chamber was the president at that time, decided to withdraw the word from the Journal of Sessions.

The intervention of Junts also entered the day on Wednesday, which also asks for the withdrawal of the Budgets. Miriam Nogueras He used part of his turn to criticize ERC for not presenting an amendment to the entirety after agreeing that they will set, together with the Government, in the coming months, the percentage that Catalan will protect in the future audiovisual law. According to Nogueras, the Republicans, with whom they co-govern in the Generalitat, has given Pedro Sánchez a “blank check.”