Congress of Deputies

Junts announces it will vote in favor of the Spanish government's decree law with measures for the war

Miriam Nogueras is confident that the PSOE will make a gesture in favor of VAT relief for self-employed workers earning less than 85,000 euros.

MadridJunts per Catalunya gives the Spanish government a breather and will save the decree of the Spanish government which contains fiscal measures to mitigate the effects of the Iran-Contra affair. Among them is a reduction in VAT on fuel, electricity, and gas. This was announced by the Junts per Catalunya spokesperson in the Congress of Deputies, Míriam Nogueras, in an interview on TV3. She linked it to a gesture by the PSOE (Spanish Socialist Workers' Party) in favor of exempting self-employed workers with an annual turnover of less than €85,000 from VAT. How should this gesture take the form of a vote in favor of a point in a non-binding motion—a non-legislative initiative, known as a PNL, which is not legally binding—presented by Junts and scheduled for a vote on Thursday. "We expect them to vote yes to supporting the self-employed, so they will have our vote in favor of the decree," Nogueras stated, even though its approval would not have immediate effects unless the Spanish government takes any concrete action. "We know that they want to transpose this directive and that, indeed, small self-employed workers will have a little more breathing room," Nogueras stressed in this regard.

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And the PSOE and the Spanish government support it. "There is a commitment to promote the point of the non-legislative proposal," sources at Moncloa Palace admit privately. The Socialist spokesperson in Congress, Patxi López, has argued that they "perfectly" agree with the transposition of the European directive: "We agree so much that we had an amendment presented in a law with these same terms and direction," he emphasized. It is a amendment that the socialists presented within the framework of the parliamentary process of the reform of the general tax lawwhich has been stalled for more than four months. However, it has affected Junts: he lamented that "it can't all be a permanent exchange of favors" and urged the Junts members to "say whether they agree or not" with the measures in the decree.

Although the Junts per Catalunya coalition had not yet revealed how they would vote, last week they boasted that they had "forced" the inclusion of a series of measures in the decree and that the Spanish government "bought all the tax cuts" they had proposed, which was a "key condition for considering" their vote in favor. This led many to believe they would support it, even though Sumar managed at the last minute to include a tax on corporate profit margins. Thus, the legislation will receive the green light and remain in effect after Podemos announced on Monday that it would abstain because it believes the law will be "ineffective" in lowering prices and "insufficient to protect people." Podemos continues to demand that the Moncloa Palace set price caps on fuel, energy, and food.

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What does the decree law include?

The decree law to be approved on Thursday includes 80 measures that will cost the public coffers 5 billion euros, primarily due to tax cuts. These include, for example, a 60% reduction in electricity-related taxes, a reduction in VAT on electricity, gas, pellets, and firewood from 21% to 10%, the temporary elimination of the energy production tax—currently 7%—and a reduction in the excise tax from 5.5% to 0.5%. VAT will also decrease for gasoline and diesel, resulting in a reduction that the government estimates at 30 cents per liter when filling up.

The PP does not clarify its vote

Meanwhile, the People's Party (PP) continues to play coy about how it will vote. Early this morning, Alberto Núñez Feijóo urged the Spanish government to withdraw Thursday's vote and invited Pedro Sánchez to "reconsider." The PP leader's objective is to incorporate measures such as adjusting the personal income tax (IRPF) for inflation.

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"The Spanish government doesn't have to bring this up for ratification next Thursday. It can be ratified until April 20th; we don't need a vote on Thursday," he stated in an interview. Antena 3"We will do what we deem appropriate if we are forced to vote on Thursday," she said regarding the vote. Likewise, the PP spokesperson in Congress, Ester Muñoz, believes the decree is "clearly insufficient" and has demanded that the Moncloa Palace issue a "new decree" with the measures requested by the PP.

The housing decree, doomed to failure

"I appeal to everyone's sense of responsibility. We want the unanimous support of the chamber," said Spanish government spokesperson Elma Saiz, who touted the benefits of the measures (which are already in effect) for citizens' finances. At the same time, she assured that the Spanish government will fight to try to validate the other decree law that extends rental contracts, even though Junts has already stated it will vote against it. "We will not give up on the decree law; we will work for its validation to continue protecting vulnerable people in housing matters," she added.Núria Orriols Guiu reports.