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Why Sánchez does not need new budgets to allocate aid to those affected by DANA

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Why Sánchez does not need new budgets to allocate aid to those affected by DANA

Raymond Torresdirector of Situation and International Analysis of Funcas, emphasizes in a conversation with EL ESPAÑOL-Invertia that “not strictly necessary” have new budgets to implement an aid plan like the one approved by the government. “You can make a credit modification,” explains this economist. However, the absence of new accounts it complicates things.

The legislation allows credit changes between departments and, in addition, it is possible to carry out a reallocation of European funds or a new allocation in the event of the arrival of new amounts from Europe. Likewise, it is also possible to resort to extraordinary credits, as happened in 2020 after the outbreak of the Covid-19 pandemic.

But in any case, this is not desirable. “It’s true that it’s complicated without general budgets. Very little margin leftbecause the needs that had been detected in 2022 must be taken into account for the 2023 accounts and we are in a very different situation. It’s very complicated, but it’s still possible,” says the director of Coyuntura de Funcas.

Yes, always The spending cap in current budgets functions as a limit. Although some extraordinary items are not taken into account – such as increased spending on debt repayment or unemployment benefits – “it is not clear” that the same will be true for the plan aimed at mitigating the damage caused by DANA. And this includes all types of actions, from direct aid to investments intended to replace destroyed capital.

The Popular Party refused in a few minutes the “blackmail” of Pedro Sánchez, linking the recovery of the Valencian Community after DANA to its government which executes the 2025 budgets according to those of. Alberto Nuñez Feijóowhat matters is that the Valencians “can recover what is still recoverable”, and not that Sánchez “is fine”.

In Genoa, they revolt against a president who, they believe, he never stops “always thinking about his best interests”. It is for this reason that they reject the argument of the PSOE according to which the aid that the victims, the region and the companies can receive with public accounts would mean the “mess up” of the legislature of a president that they considered “disastrous” for Spain.

The truth is that Sánchez announced, for example, that a good part of the aid, in the first phase, would be paid “within 30 days”. Knowing that we are at the beginning of November, This would have nothing to do with next year’s public accounts. Especially since the PSOE not only did not present the draft budget – as required by the Constitution, before September 30 – but it did not even agree with Junts on the path to deficit .

Another substantial part of the plan detailed by the president this Tuesday is transmitted through tax exemptions and subsidies. Nor does it require general budgets to support it.

The same goes for the part of economic incentives that come from European funds. Sánchez wants the EU to allow him to use the rest of the cohesion funds he has not spent. The PP is being sarcastic in this, because it has always criticized Sánchez’s governments for “not knowing how to execute European money on time.” In any event, neither these funds nor a relocation of recovery funds, NextGeneration EUthey demand public accountability.

In addition, Any government can use the contingency fund for exceptional situations. And nothing is more extraordinary than the devastation caused by DANA, for which Carlos Mazón has already estimated the needs of his region at more than 31 billion.

With all this, the PP could easily defend that Sánchez has no right to request a vote on the budgets of a government that he categorically rejects. And even if the facts are so stubborn, A communication plan is already in preparation from Genoa to explain it well to citizens.

It is for the Valencians to receive enough help to move forward and the productive sectors of the affected areas are reconstructed,” say the party sources consulted.

“In this line, we have already proposed a Valencia map be dealt with specifically in Congress” and in this 27-page document, the plan announced this Tuesday by Sánchez seemed inspired, because it coincided not only in the measures, but also in the structure and stages.

We are not going to approve Sánchez’s EMP which he did not even present. And even less so to blackmail victims in favor of their interests,” concludes this popular spokesperson. “Aid for those affected can be approved outside of the budgetary debate.”

Sánchez counters. Mazon

However, the recent approval of the central government’s aid plan, valued at 10.6 billion euros, marks a first step in the recovery of areas affected by DANA in the Valencian Community and other regions. However, The approved amount represents only a third of the 31.402 million that Carlos Mazón, president of the Generalitat Valenciana, had proposed to rebuild.

The government’s plan is divided into three phases: Immediate Response, Reconstruction and Recovery and the aid announced this Tuesday only corresponds to the first part. For its part, the proposal launched by the Executive of Mazón is also structured as a first step.

Regarding the analysis by positions, the regional proposal includes a fund of 74 million euros in aid to municipalities (one million for each municipality) to cover the immediate costs of cleaning, rehabilitation and emergency services. It also includes a game of 100 million for reconstruction and rehabilitation damaged sports infrastructure.

On the contrary, Sánchez’s plan does not detail a specific figurebut it will cover all emergency expenses and 50% of those derived from all works carried out in the coming months and years to repair infrastructure, facilities and services such as roads, sports centers or civic centers .

Furthermore, The Generalitat’s proposal provides for 7,500 million euros in aid of up to 15,000 euros per person concernedwhich complement the 6,000 euros already proposed by the Generalitat, and an additional 900 million for the rehabilitation or reconstruction of housing, with aid of up to 15,000 euros per affected housing.

Sánchez, for his part, announced aid of up to 72,000 euros in the event of death and disability and between 20,000 and 60,000 euros for home repairs. Likewise, up to 10,300 euros will be allocated to changing or repairing furniture, appliances and fixtures and up to 37,000 euros to repairing elements of neighborhood communities, such as doors or doors. elevators.

In addition, The government will allocate up to 838 million euros in direct aid to SMEs and the self-employed. This aid will be 5,000 euros for the self-employed and will vary between 10,000 and 150,000 euros for businesses, depending on their volume of activity.

While, The plan presented Monday by the Mazón executive includes items that total more than 10 billion euros in this matter. However, it considers concepts such as renewal plan for passenger cars, vans and trucks which in the central government plan are considered part of the compensation from the Insurance Compensation Consortium.

However, it should be noted that Only the proposal for compensation for damage caused to the hotel industry, food and small and medium commerce by the Executive of Mazón exceeds 1.2 billion euros. That is to say, only this part of the estimated aid already exceeds the total of what the central government intends to allocate to SMEs and the self-employed.

Finally, both plans consider tax relief, but with a different approach. Central government proposes IBI exemptions and tax cuts for 2024while Mazón’s plan extends the IBI exemption until 2025 and calls for an interest-free deferral of regional and state taxes.

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