The Applied Economics Foundation (Fedea), a think tank close to the CEOE employers’ association, is very critical of the agreements, both for the government and to achieve the investiture of Pedro Sánchez, that the socialists have reached over the last few years. weeks. In an article published this Wednesday, its researchers are especially concerned about the concessions that could be made with the Catalan nationalist parties.
Thus, although it is not clear from the text of the agreement with Junts that the Government is going to transfer to Catalonia 100% of the state taxes collected in its territory (it is only a demand from Puigdemont’s party), they do not share that the The PSOE has agreed to start a bilateral negotiation process with the Generalitat on financing that is also based on a “surprising common diagnosis” that largely accepts the nationalist theses about the alleged deficiencies and abuses of the current system.
It is not likely that this negotiation process will culminate in the current legislature with an agreement on the nationalists’ maximum claims, but significant concessions cannot be ruled out, they point out, that could lead to a special status for Catalonia in both the negotiations. on the aforementioned reform, as well as on its position in the new model. This could lead to a lower contribution from the community (one of the richest) to the common fund and, therefore, given its starting position, end up translating into “privileged financing to some extent,” they point out in the document.
From Fedea they appreciate a significant risk that such concessions “mark the beginning of a confederal drift that would gradually reduce the margins for interterritorial leveling and, with it, for personal redistribution beyond the internal scope of each community,” they maintain. The foundation goes further and believes that this process would entail a gradual weakening of the State, which could end up being deprived of the resources and tools necessary to be able to carry out its basic functions.
Fiscal indiscipline and more imbalances in public accounts
Another fear that emerges from the reports is how the general and unconditional forgiveness of part of the debt owed to the common regime autonomies “will contribute to aggravating” their problems of “fiscal indiscipline.” The autonomies, which have been receiving record income in recent years on account of the financing system due to historical tax revenues, have received a little more margin next year from the State and may incur a deficit of one tenth.
In the article, prepared by its executive director, Ángel de la Fuente, Fedea also warns that the investiture agreement between PSOE and Sumar “slants” the program of the nine Government “clearly to the left.” This will translate, in the opinion of its experts, into a “significant” increase in public spending and fiscal pressure.
“To the strong upward pressure on spending, the recent pension reform will already generate in the coming years, plans are now being added to improve numerous members and increase public spending in health, education, housing and other areas, argues the Executive Director of Fedea. “It seems unlikely that everything proposed can be done without further unbalancing the public accounts, contrary to what the European Union will demand after the reactivation of the fiscal rules, or without strong tax increases for everyone and not just for the rich,” he warns.
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