The Minister of Finance, María Jesús Montero, has today poured cold water on the claim of the Valencian Community, and other autonomies such as Murcia, Andalusia or Castilla-La Mancha, to create a temporary leveling fund until it is approved a new regional financing model. I raised this issue and the community as a whole said no,” she indicated, meaning that “it is easy to agree with those who think the same, what is difficult is to agree with those who think differently.”
Thus, he ruled out this possibility and stated that the Treasury is going to begin “a work process with the autonomous communities to see the impact of the funding cut by Rajoy's governments.” He stated that, in those years, the regions were “forced into a degree of indebtedness that the State is now willing to assume.”
Last Monday, the Applied Economics Study Foundation (Fedea) proposed the creation of a transitional fund endowed with 3,000 million euros to place the four underfinanced communities in the “correct position.” Fedea explained that it would be a fund with resources “provided by the State” that “would later be integrated into the system,” because it would be a temporary fund. They opted to create the fund “immediately.”
This Wednesday, the president of the Valencia Community, Carlos Mazón, stated within the framework of the International Tourism Fair (Fitur) that "the four of us agree" - in reference to the four underfinanced regions - "that, in any case and first, while a new financing system is coming, a temporary leveling fund that at least makes us equal" to the less financed regions "is fundamental, it is inalienable."
Over the next few days, in February, the Treasury will open a round of contacts with the autonomous communities to finalize its proposal to absorb part of the debt contracted with the Autonomous Liquidity Fund (FLA) during the economic crisis. This was announced by the first vice president, María Jesús Montero, during her appearance in the Finance and Public Function commission of the Congress of Deputies, where she explained the general lines of the economic policy that the Government intends to develop during the legislature.
Montero has advanced that the proposal that he will convey to the regional Treasury councilors will be determined based on “objective and common parameters.” The Government has already agreed with ERC to absorb 15,000 million of the debt that Catalonia contracted with the State, a model that it plans to reproduce in all territories. Madrid, which has no debt, will receive a transfer.
The Minister of Finance has asked the PP to abandon “ideological positions” and move forward with a possible agreement. “I make a sincere appeal so that we can approach this debate with rationality and honesty,” she claimed to the regional governments. The absorption of a part of the debt accompanies the attempt to reform regional financing. Montero has defended his proposal on adjusted population, which he already presented in the last legislature, to begin the dialogue.
The first vice president announced in the same parliamentary appearance that today the European Commission is going to confirm the transfer of the pre-financing of the addendum requested by Spain. This will allow receiving 340 million in loans. Specifically, according to Montero, the Commission will authorize in a few days the 1,040 million pre-financing specified in the addendum phase. There are more than 1,380 million more. For Montero, these communications from Brussels are a symptom of “trust” in the country.
Regarding the subsidy decree that overturned Congress, Montero has revealed that the Government is in negotiations with the European Commission to “direct” the situation. “We will shortly bring the text for new discussion by Congress,” added the first vice president.
María Jesús Montero has also set the priority of presenting the Budgets for 2024 in the coming weeks. The Minister of Finance has announced that the Government's intention is to approve this year's public accounts “as soon as possible” and she has revealed that she has already contacted the political groups that supported Sánchez's investiture. The Ministry of Finance has already presented the spending ceiling, which is a record, and the path of stability. Faced with the possibility that the Senate, with an absolute majority of the PP, rejects the stability objectives on two occasions, Montero has recalled that the margins will be “less flexible” for the autonomies and city councils.
In the tax area, Montero has defended a “more modern, fair and redistributive tax system” and, in this sense, has confirmed the regulatory change in personal income tax, which will be included in the Budgets, to adapt the tax to the increase in the SMI. He has also announced an improvement in taxation for the self-employed and SMEs, the search for a State pact against tax fraud and has stressed that the temporary taxes on banks and energy companies, which were launched as temporary, will be permanent. However, he has stressed that there will be incentives for energy companies that invest in strategic projects, although he has added that they will have to be specified. As an example he has cited the development of electrical networks.
The head of the Treasury has also assured that the tax on large fortunes will be maintained until a reform of regional financing that adjusts property rates.
Montero has also confirmed that he will publish the fiscal balances, as stated in the agreement reached with Junts to validate the anti-crisis decree and the omnibus, and has advanced the creation of a “tax civility” tool so that citizens know what they mean. they allocate the taxes you pay. Montero has specified that the Treasury will make changes to the Ministry of Finance's website to adapt this new application.
