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HomeTop StoriesFoment advocates extending Catalonia's tax agreement to the rest of the LACC

Foment advocates extending Catalonia’s tax agreement to the rest of the LACC

The Catalan employers’ organisation aligns itself with the government, supports the single financing proposed for Catalonia within the framework of the agreement between PSC and ERC and defends that the pact This could pave the way for other autonomous communities to benefit from better conditions in the future. “Catalonia was already at the forefront of change during the mandate of the Popular Party in 1996,” recalls Foment del Treball in a statement in which it insists that the tax agreement reached 28 years ago under the presidency of José María Aznar “although surprising at first, ended up being accepted by all communities. “Today they manage a significant part of the taxes they collect without any community wanting to return to the previous model,” explains the organization chaired by Josep Sánchez Llibre.

The first vice-president, María Jesús Montero, is summoned to the Senate tomorrow at the request of the Popular Party. The Minister of Finance must explain the terms of the financing model proposed for Catalonia, which in recent weeks has led all the regional governments – including the socialists – to express their rejection, knowing that it would remove resources from the common fund with which they finance the entire LACC. The spokesperson for the Socialist Executive, Esther Peña, gave indications yesterday of the arguments that Montero will use to defend the agreement with the ERC. “Catalonia has opened a breach, now the others (territories) have the possibility of obtaining more financing to improve public services,” he said after the meeting of the socialists. An aspect to which Foment adds, who defends that the objective of the Catalan financing agreement “is guarantee quality essential public services to all Spanish citizens”.

This will be one of the main arguments on which the vice-president’s appearance will be based, as she will present the Catalan pact as the spearhead of the reform of regional financing, which has not been reviewed for 10 years. “Citizens do not care who collects, what they want are quality services,” Peña anticipated.

However, a long negotiation is expected. The Government must – first – define a position that convinces ERC, which continues to demand the departure of Catalonia from the common regime; it will then have to appease the territorial discontent generated by the pact. Not only have the ranks of the PSOE itself been unhappy with what has been signed, but other parliamentary groups necessary for the promotion of the norm – such as Compromís or the BNG – are demanding the same tax treatment for their communities as that agreed in exchange for the investiture of Salvador Illa. It is for this reason that the Catalan employers’ union is asking the political forces to open a transparent negotiation, in which “threats or emergencies” have no place.

A temporary mechanism

Aware of the long process that the development of the reform of the system will require, Foment proposes transitional measures to correct the main deficiencies of the current model, until a new one is agreed. Specifically, they demand that the Executive urgently approve a mechanism that offset the high level of regional debt caused by underfunding to which several Spanish regions continue to be subject. It also calls for the relaxation of the criteria for access to the Interterritorial Compensation Financing Fund and for the review of the current system of deductions and advance payments made by the Government.

However, the political climate does not inspire optimism. Although Sánchez Llibre’s supporters are calling for “political and institutional loyalty” to the future reform of the system, the tension between the Executive and the main opposition party is increasing day by day. PP leader Alberto Núñez Feijóo said today once again that Catalonia’s single financing model hides a “new pact with the independence movement that, in practice, aims to end the equality of the Spanish“In fact, Genoa has summoned all its regional presidents – this Friday – to a meeting from which a common response is expected against a rule – which, according to the calculations of the popular – “will cost the Spanish people 13 billion euros”.

In fact, the PP has called on the socialist barons critical of the measure – Aragon, Castilla-La Mancha, Asturias, Extremadura – to encourage the rebellion of their deputies in the Congress of Deputies. “They are the ones who have the power, to a large extent, to stop this outrage against the equality of the Spaniards. We appeal to all of them,” declared yesterday the popular economic spokesman, Juan Bravo.

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Katy Sprout
Katy Sprout
I am a professional writer specializing in creating compelling and informative blog content.
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