Sánchez pushes through the anti-crisis decree with Junts' yes and the PP's abstention

MadridThe tax cuts of the anti-crisis decree have received the approval of Congress. Pedro Sánchez's government, which already had the approval guaranteed with Junts' yes, only obtained the vote against from Vox. The PP, which was no longer decisive, finally abstained. However, Alberto Núñez Feijóo's party had left the door open to a vote in favor until the last moment, conditioned on a last-minute change by the Spanish government, which did not happen. The PP demanded the commitment to deflate personal income tax. In Thursday's parliamentary debate, the Minister of Economy, Carlos Cuerpo, argued that today the decree is already "forceful" and "the most ambitious" ever proposed in the legislature. In contrast, for the PP, the package of measures approved last Friday by the Council of Ministers is still "insufficient". However, they did not vote against it because "it includes part of their proposal for tax cuts".

approved last Friday by the Council of Ministers is still "insufficient". However, they did not vote against it because "it includes part of their proposal for tax cuts".

"They have copied us", stressed the deputy secretary of the popular treasury, Juan Bravo, who insisted on the need "to adjust the personal income tax bracket" so that "families do not lose purchasing power" due to inflation. On the part of the Junts, the deputy Josep Maria Cruset also boasted that "the backbone" of the decree "are Junts' proposals". Despite the vote in favor, Carles Puigdemont's party wanted to distance itself from the Spanish government and the "misery they are bringing to people's homes" with their other policies. "Things will get worse and no propaganda will save them", warned Cruset, who criticized the left for "pointing" and "insulting" them for opposing other measures, such as the extension of rental contracts included in the second decree approved last Friday and which has not yet reached Congress.

The formations pushing for the approval of housing measures are the same ones that have reproached the "lack of ambition" of the first decree. In fact, Podemos deputy Javier Sánchez Serna has demanded that the PSOE, if the rent extension is dropped due to the right's rejection, "reapprove it month by month." The "lilas" have made this a condition for "continuing to negotiate future royal decrees." They abstained on this one. ERC deputy Inés Granollers has also issued a warning against the "pressures" from Junts and has predicted that "we will have to work on another" decree because the one on tax cuts "falls short." Oskar Matute, deputy for EH Bildu, has lamented that the fact that they are "indiscriminate" tax cuts will benefit the richest more, and has denounced that no cap is being put on the extraordinary profits of energy companies.

Cuerpo has maintained that it is a "coherent" decree, although he admitted that if the conflict "persists over time" it will be "potentially the biggest supply shock in history" and "the response will have to be adapted," which could involve additional measures. Despite not having accepted the condition the PP was setting to vote in favor, Cuerpo has stressed that the decree has been drafted through dialogue with parties, social agents, and experts and "has counted on their contributions." PSOE sources have criticized the PP and Vox for, however, not voting in favor. "It is demonstrated that the patriotism of the right does not amount to much."

Funcas's calculation

The decree represents around 5 billion euros in aid and tax incentives, and among the approved measures, the tax reduction on VAT (from 21% to 10%) and the special tax (IEH) applied to gasoline and diesel stands out. During the three months of the measure's validity (until June 2026), Funcas has calculated that it will have a revenue cost of 1,055.6 million euros, according to an analysis published this Thursday by the study center. The bulk is due to the VAT reduction. The average savings for households will be 90 euros during the three months it is in effect. In any case, it will not affect everyone equally. The organization again warns that these types of measures are "regressive." "The higher the income level, the greater the tax savings," it highlights, and acknowledges that the measure may be "effective" in rural areas where public transport is scarce, reports Núria Rius Montaner.