"Don't take the risk this time": partners pressure Sánchez over the emergency plan to counter the war in Iran

MadridThe war in the Middle East dominated the question time session in the Congress of Deputies, with all eyes on Friday, when Spanish Prime Minister Pedro Sánchez will have to detail the measures to mitigate the economic effects of the conflict. While Yesterday, they were already warning from Moncloa. While the emergency plan would not be generalized—but rather targeted and focused on the most affected sectors—tensions within the plurinational majority regarding the Spanish government's response became evident this Wednesday. Although the PNB (Basque Nationalist Party) has demanded tax cuts and insisted they not be combined with other "extreme" or "ideological" measures, Podemos is demanding that the government cap the price of food, rent, mortgages, and energy. Sumar, a coalition partner, is also pressuring the PSOE (Spanish Socialist Workers' Party) to include the housing issue, which divides the majority in Congress, in the decree law. Sánchez has not yet specified the emergency plan (he will detail it himself on Friday and wants to await the conclusions of Thursday's European Council meeting), but he has committed to negotiating measures to protect the most vulnerable. He has, however, called for responsibility from the plurinational majority in the face of this situation. It is expected that after the decree-law is approved on Friday in the extraordinary Council of Ministers meeting, the ratification will be voted on next Thursday in the Spanish Parliament. Sources at La Moncloa (the Prime Minister's residence) assure that they are talking with all the political groups and admit that they must perform a "balancing act" to secure the necessary votes: "We have to find the magic formula." However, they are calling for "a broader perspective" in this situation.

Before the plenary session began, the Minister of Social Rights, Pablo Bustinduy, reiterated the demand to extend rental contracts. "We have been fighting for months for this extension; it is a common-sense measure," he argued when asked about the issue. He also lamented the reservations shown by the PSOE (Spanish Socialist Workers' Party) from the outset: "I don't understand the reason for resisting protecting millions of tenants, and we will continue fighting until we achieve it." A few minutes earlier, the PSOE spokesperson in Congress, Patxi López, had avoided anticipating what the decree would include: "We'll see on Friday." The Socialist benches want to prioritize "consensus"—in the words of Economy Minister Carlos Cuerpo yesterday—and they understand that if housing-related issues are included, Junts or the PNV could likely be left out of the majority. "Don't gamble this time," warned the spokesperson for the Basque nationalists, Maribel Vaquero, "negotiate" because, she said, many families and self-employed workers depend on it. Both the PNV and Junts have presented their own measures to address the effects of the war, based on reducing VAT to 5% for essential energy supplies; a general deflation of personal income tax to combat inflation; or reinstate the Iberian exception to limit gas prices, provide utility subsidies for the most vulnerable families, and offer fuel price discounts to certain sectors.

However, Podemos and Bildu are demanding more. Ione Belarra has called on Sánchez to make "no to war" a reality by closing the Rota and Morón air bases, expelling the US military from Spain, and withdrawing from NATO. "Working people shouldn't pay for the war; Repsol should pay for it," she demanded, adding that the situation won't be resolved by lowering taxes: "We have to intervene in the market." Bildu spokesperson Oskar Matute echoed this sentiment in a question to the Minister of Finance, María Jesús Montero: "Don't be afraid of the right wing; we have to reinstate the energy tax, limit the price of basic foodstuffs, extend rental contracts, and provide utility subsidies [...]. These are extreme measures, yes, but they are extremely necessary."

Along the same lines, Compromís MP Alberto Ibáñez warned the PSOE that it is on the "wrong track" and urged the Socialists to promote housing measures: "There is no more important emergency than housing; what good is it for people to have heating in their homes if they don't have a home?" The Spanish government, however, has remained noncommittal and has simply stated that the aid package will attempt to appease everyone in order to pass Congress. In any case, they also warn that different royal decrees can be issued, separating the measures to satisfy the coalition partners, but avoiding an omnibus package that would force the groups to vote on the entire package. In fact, the social safety net to help the most vulnerable pay their utility bills failed because it was included in the same decree as the suspension of evictions, which Junts rejects because it believes it transfers the problem from the administration to private entities.

Sánchez asks the PP to clarify its position on the war

The tensest exchange of the question time session, however, was, as usual, between Sánchez and Feijóo. Faced with accusations of being a "loser" from the Popular Party leader due to the PSOE's poor showing in the regional elections, the Spanish president touted the "consistency" of his foreign policy in defense of international law and criticized the PP for not clarifying its position on the war in Iran: "You can't support those who start the fire and then complain about the effects. Correct yourself," Sánchez said, reproaching the PP for not standing up to Trump. "You say yes to war and no to aid," the Spanish president concluded. Feijóo said that if the Spanish government wants the support of the Popular Party, it shouldn't mix the measures to address the war in Iran with other issues: "Don't even think about including these measures in an omnibus decree," he warned. And he urged him to "do the right thing" and "copy the measures" that the PP presented days ago, such as lowering income tax, the VAT on energy, taxes on all fuels, and professional diesel. "The majority of Spaniards don't want war; what we do want is for you to leave us in peace," he concluded.