The PSOE and Sumar agree to divide the measures into two decrees to save the emergency plan against the war

MadridAfter an unprecedented clash with the Sumar ministers, Spanish Prime Minister Pedro Sánchez appeared this Friday at Moncloa Palace to explain the emergency plan to address the Iran conflict. According to sources consulted by ARA, the coalition partners negotiated the package to deal with the consequences of the conflict in the Middle East at the last minute and finally reached an agreement: they will divide the measures into two decrees to salvage the emergency plan, which is scheduled for a vote in Congress next Thursday. One decree will include tax cuts to appease Junts, and will also incorporate levies on corporate profit margins, while the other will focus on housing. The clash was unprecedented: although the extraordinary cabinet meeting was scheduled to begin at 9:30 a.m., it did not start until noon because the Sumar ministers refused to attend.

As this newspaper explained yesterday The emergency plan includes VAT cuts on fuel and electricity to appease Junts, but the Socialists resisted including housing measures, as demanded by Sumar, because they were destined to fail in Congress. For this reason, they have divided the plan into two separate royal decrees, so that if the Spanish Parliament rejects the one containing the housing measures, at least the rest of the package will pass. Both Junts and the PNB have warned the PSOE that they will not support the extension of rent payments or the suspension of evictions. "Don't risk it this time," the PNB had warned them this week.

Throughout the week, the Socialists had already signaled their intention to prioritize consensus over a sweeping decree law that would be passed in the Spanish Parliament next week. In other words, they aimed to secure the support of the plurinational majority with minimal measures, while avoiding those that could jeopardize the approval of the emergency plan. This strategy also sought to put pressure on the People's Party (PP), making it difficult for them to justify voting against it.

Sumar, however, sees it differently: they are calling for seizing the opportunity to incorporate the suspension of evictions and the extension of leases expiring this year (some sources suggest two years), putting Junts and the PNB in ​​a difficult position. They believe that Junts will not dare to overturn the measures to mitigate the effects of the war.

According to sources familiar with the negotiations, the package of measures would include reducing the VAT on electricity, gas, and gasoline to 10%, as well as temporarily eliminating the tax on energy production. The special tax on hydrocarbons would be lowered from 5.5% to 0.5%. At the same time, social assistance for utilities would be incorporated for the most vulnerable, a measure that would have the support of the regional assembly. EH Bildu, which, like Díaz's party, ERC, and Podemos, is pushing for a more comprehensive emergency plan, has also commented: "Lowering the VAT is not the solution."

The priority of the emergency plan

The Spanish government has placed great importance on the approval of this package of measures, to the point that Pedro Sánchez has justified the delay in presenting the budget, which has been extended for three years, in order to prioritize this decree-law to mitigate the effects of the war. The fact that there is no consensus, even within the government, on what to do, once again puts Pedro Sánchez in a difficult position. "This would bring down the government of any democratic country," tweeted Ester Muñoz, the Popular Party's spokesperson in Congress.