He People’s Party has commented and asked “a battery of questions” about the fiscal adjustment plan that Spain presented this Tuesday before the European Commission for breach “community legislation”, as shared by the popular ones. The plan details how they intend to reduce the country’s high levels of debt and public deficit.
“The plan presents serious defects of substance and form“, that’s how he defines it Dolors Montserratspokesperson for the PP in the European Parliament and vice-president of the EPP Group in the European Parliament. “It is a fiscal plan in the purest style Sanchez“, he assures, “unrealistic reviews, skyrocketing spending without considering European forecasts, contempt for the criteria of Congress, communities and city councils, and suffocating to the territories that will have to pay it over the next seven years,” he adds.
This project has a seven-year roadmap, in which Spain will commits to limiting the increase in public spending to balance its accounts, battered after the great recession and the pandemic crisis, as reported Carlos BodyMinister of Economy. For Montserrat, the economic estimates are “unreal” and it is “an adjustment plan for a moribund government that is going to mortgage our future when he is no longer there,” referring to Sánchez, who might not be governing at that time. “Sánchez organizes the spending party, but others pay the bill,” he adds.
For his part, Fernando Navarrete, popular MEP, maintains that this adjustment, in which taxes could be raised and social contributions increased, “will end negatively affecting employment and a further deterioration in purchasing power of the citizens.” Navarrete assures that “the final consequence of this composition of the fiscal adjustment is that the plan itself foresees a serious deterioration in the potential growth capacity of the economy from around 2% to barely 1% at the end of the decade”.
The popular ones ask the Commission to intervene
The questions that the Party has brought to the European Commission are based on European Regulation 2024/1263, which lists the rules that exist to create tax plans like the one presented this week. Among the established rules, the PP has mentioned that national Parliaments and interested parties must be “involved” and that it is mandatory to “consult regional authorities before presenting said plan.”
However, they assure that Sánchez “has ignored the requests of the Popular Group in the Congress of Deputies to debate it” and that “it has not been presented to the Autonomous Communities.” Therefore, the popular ask the Commission to interveneciting that according to the regulations collected, this “undermines the national appropriation and credibility of the new fiscal governance framework of the European Union.”
This project also does not take into account, according to the PP, the consequences and impact in the future of “the increase in social contributions” or “the growth capacity of the economy.” The bases of the European Regulation state that each plan must mention “the procedural situation in the national context, with a spending path consistent with the budget plan.”
In the context of “budgetary exceptionalism that is experiencing Spain from 2023″, the Popular Party has asked the Commission to evaluate “the violation of the legal deadline presentation of the General State Budgets 2025″. In addition, it also requests that the fact that “the Government has not presented its draft budget plan as of the date of submission of the fiscal-structural plan” be taken into account.
