Sunday, March 3, 2024

The economic stars of the Council of Ministers on Tuesday

The economy, the main spearhead of the coalition government during the last legislature, once again stars in Ministerial council this tuesday. After approving the last increase in the Minimum Interprofessional Wage (SMI) on February 6, the draft reform of the Workers’ Statute, the increase in the minimum income tax exemption and drought and agriculture measures, the coalition returned with more economic steps. The first of these, the new deficit path, was forced to veto the PP; the second, the ICO guarantees for new houses, the fulfillment of a promise.

The deficit issue

On Wednesday, the stability of the budget and public debt objectives for all public administrations and each of the subsectors in the period 2024-2026 fell in the Senate due to the vote against the Popular Party (PP). The conservatives have an absolute majority in the Upper House and they have declared it, despite the fact that it harms the autonomous communities and city councils managed by party members. The text received support in the Congress of Deputies, but that of Alberto Núñez Feijóo proposed to torpedo the General State Budgets (PGE).

The collateral victims of the PP strategy are local and regional administrations, which designed their annual accounts on a lighter path to the deficit that the Treasury agreed with Brussels. In more detail, it establishes a progressive reduction of the national deficit to 3% in 2024, moving to 2.7% and 2.5% in the following two years. For other subsectors, the demands for the communities are calmedbecame 0.1% instead of the stability required in the previous path, and the stability for city councilsfar from a 0.2% surplus.

Decreasing this road will damage territories such as Andalusia, where the Board approved its budgets based on a 0.1% deficit. Now, the Executive of Juan Moreno Bonilla can make an adjustment of up to 200 million euros to adapt to the parameters sent to Brussels in April, which according to the Treasury can be implemented if there is a new veto of the PP. The Department of the Andalusian Treasury underestimated this possibility, which is already expected, but the truth is that it means the loss of hundreds of millions for public spending.

ICO guarantee

Another of the policies that will be made by the Council of Ministers this Tuesday is line of guarantees from the Official Credit Institute (ICO)provided for young people and families with minor in charge and endowed with 2,500 million euros for access to enter the purchase of a house. This controversial policy, which represents an improvement and a protection for banking entities, has generated controversy. Entry guaranteed is 20% of total purchase and designed especially for those under 35 years of age with an annual income of less than 37,500.

This policy has been known since May last year, when the PSOE leader was in the middle of the electoral pre-campaign for the municipal and regional elections. Pedro Sánchez, he announced this at a rally in Santa Cruz de Tenerife. The calculations of the coalition Executive estimate that the policy will reach 50,000 people. “I say this especially to young people, if you don’t know, so you can start it from next tuesdaySanchez confirmed.

“This helpline goes in the direction of alleviating this lack of earlier resourcesbecause at this time in some areas of our country the rent is as expensive or more expensive than the mortgage note and maybe the latter is not accessible due to the lack of resources or previous savings,” he explained. Isabel Rodríguez, Minister of Housing and Urban Agenda. However, the move did not have the support of all left-wing forces.

Podemos has announced that it is against it and, because of this, the final word to push the proposal forward when it comes to Congress may rest in the hands of the sole representative of Canarian Coalition, Cristina Valido. From the purple formation they justified their refusal by pointing to the gift of “public money to the banks without saying that you will give the public money to the banks” which means guaranteeing the debts signed by banks. “There is no point in Pedro Sánchez showing that the chief of staff.” by Mrs. Botín”, advocates from the party, which has four representatives.

World Nation News Desk
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