Sánchez saves tariff aid despite the umpteenth "no" from the PP

MadridThe day after Pedro Sánchez be submitted to the scrutiny of Congress Due to the power outage and the increase in defense spending, the Spanish government has passed a new test with the vote on the decree to address Donald Trump's tariffsThe confrontation with the right that took place during the head of the executive's appearance was once again visible with the umpteenth vote against from the PP, which refused to support the regulation that activates the first 7.72 billion euros mobilized to alleviate the effects of the trade war. Vox also opposed it, but the plurinational majority that appointed Sánchez saved the package of measures. With the votes in favor of ERC, Junts, Bildu, PNV, BNG, and Coalición Canaria, as well as the abstention of Podemos, the Spanish government's decree passed the vote.

At first, it seemed that there could be a consensus with the PP, and Alberto Núñez Feijóo's party came to negotiate through his deputy economic secretary, Juan Bravo, who opened a channel of communication with the Minister of Economy, Carlos Cuerpo. Despite the initial good tone of the negotiations, the talks went awry. The agreement fell through after the Spanish government reached an agreement with Junts that the aid be distributed to the communities based on their weight in exports to the US. According to the regional government, this will mean that 25% of the aid mobilized will go to Catalan companies. The power outage, seen as a golden opportunity for the popular To try to derail the legislature, it further reduced the possibility of a pact.

The PP introduced a new element into the negotiations that made reaching an agreement a pipe dream. The main opposition party linked the decree on tariffs with extending the life of nuclear power plants. Sánchez, as he made clear publicly in his appearance on Wednesday, rejected linking the blackout to the debate on nuclear energy and maintains his unequivocal commitment to renewable energy. However, the head of the executive still urged the PP to abstain from voting on the decree. However, Génova indicated that an abstention, or even a yes vote, could have occurred if, during the negotiations with the Cuerpo, the executive had adopted any of the measures proposed by Feijóo's party.

Bravo reiterated this during the debate on the decree this Thursday, in which the PSOE and PP exchanged mutual accusations about who was to blame for the failure of the negotiations. "You could choose between negotiations and the wall. You chose the wall. I don't know if it was your own choice or because it was imposed, but I think this decree is insufficient and ineffective," the PP leader told Cuerpo, who let Socialist MP Patricia Blanquer take charge of raising the tone against the PP, stating, "It's hard to explain why people vote against positive measures for businesses."

The 'yes' agreements

Before the start of Thursday's debate, the Cuerpo held an initial meeting with Junts (Junts) to monitor compliance with the agreement—the Minister of Economy has pledged to hold one every month. Deputy Josep Maria Cruset explained from the podium that they have confirmed that, for now, the Cuerpo is "complying" and the pact is beginning to yield "tangible results." According to Cruset, the Ministry of Economy has conveyed to the banks "the requirement to ensure territorial weight in the granting" of guarantees.

The Republicans, for their part, have communicated an agreement with the Cuerpo so that direct public aid is conditional on maintaining jobs and safeguarding activity. This, according to both ERC and the Cuerpo team, "will ensure that public funds are not used to relocate workplaces or reduce employment levels in the most affected sectors." Podemos has justified its refusal to join the "yes" bloc because it believes the decree does not constitute "standing up" to Trump and calls for a more forceful response to the US "aggression."

The package of measures

Sánchez promised the mobilization of up to €14.1 billion. The decree activates €7.72 billion. Among the measures it includes is a €5 billion ICO guarantee line to facilitate access to financing for companies that see their activity reduced due to tariffs, so they can maintain it and their workforces. It also activates two proposals to help affected sectors reconvert their activity and find new markets.

Specifically, a €720 million allocation in financial instruments to aid the internationalization of companies, and a second €2 billion allocation in credit insurance and export risk coverage. It also includes an accounting moratorium for companies through 2025.