Ayuso attacks Sánchez for his assignments to the Basque Country while punishing Madrid

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The intention of the Government of Pedro Sánchez to harmonize regional taxes, in what can be assumed that in regions with low taxation such as Madrid is paid more, has raised a political powder magazine that anticipates the battle of the reform of regional financing. The president of the community, Isabel Díaz Ayuso, responded yesterday morning to the words of the Minister of Finance, María Jesús Montero, who announced Thursday a tax reform to
“Mitigate situations of unfair competition or” dumping “between communities”, which directly accused Madrid. An “attack” that Díaz Ayuso called “very serious” at a Forum Europe breakfast, presented by CEOE President Antonio Garamendi.

To the ideological war has been added the different measuring stick of the Executive. The will of the Treasury to limit the fiscal autonomy of the common regime communities has coincided with the agreement with the PNV to expand the powers of the Basque Country. “While they are going to give Social Security to the Basque Country and they are going to break the equality between all the Spaniards, the Government intends to impose two anachronistic taxes: Patrimony and Inheritance and Donations”, opened fire.

This, the president pointed out, “means that a Madrid family when inheriting their home will have to pay taxes for it, and there have been many situations of citizens who
they couldn’t inherit because they couldn’t pay
this anachronistic tax ». Thus, he continued, “they intend to make an indiscriminate tax increase to Madrid by breaking their autonomy.”

To this is added that the project of harmonization of the Treasury only includes the regions of common regime, and not the foundations of the Basque Country and Navarra, which to be able to decide on more taxes and have a much higher per capita financing for the advantages of the quota and the concert. While the common regime communities have, on average, a funding of 2,082 euros per inhabitant, the forals receive almost double, 3,978 euros, according to the latest territorialized balances of the Ministry of Finance.

«Black Legend»
In this context, Ayuso warned that they will face this rise. «Before a Government of oppression, there will be a Government of freedom in the Community of Madrid. Madrid people work hard, nobody gives us anything, to give us that treatment and raise taxes, and to create these inequalities between autonomous communities and to create that “black legend” against Madrid, “he said.

The leader wanted to warn that she will not “shut up” before this fiscal increase. «They have families, citizens, businessmen on a war footing … It is an outrage. You cannot consent to break the territorial balance, to suffocate us fiscally and break the autonomy of citizens, ”he settled.

During breakfast, the CEO of the CEOE, Antonio Garamendi, stressed that “if you have to harmonize, you have to harmonize Madrid.”

The Minister of Finance announced Thursday that her intention was to have the “skeleton” of her proposed regional financing model for November or October, which will include the harmonization of taxes such as Successions and Equity. Montero already strongly opposed the tax cuts in Madrid during his time as Minister of Finance of the Junta de Andalucía. To the point that, in the previous Conference of Presidents that Mariano Rajoy convened in 2017, the PSOE communities that then headed the region presided by Susana Díaz accused Madrid of “tax dumping.” Precisely, Andalusia then proposed that the Inheritance Tax be back to the state and the 2,400 million collected by the regions will be compensated with resources.

The then counselor and now minister said last Thursday at the Finance Commission in the Congress of Deputies that his intention was to agree on the new model of regional financing with the PP. However, there were several rifirafes with the popular deputies and Montero herself came to shave the Government of Rajoy for not having approved a new model when it was expected to be revised, in 2014, taking advantage of the absolute majority it had. So Rajoy did not do it by using the lack of resources from the public coffers while he was still getting out of the crisis. All financing models have resulted in more resources for the communities. Montero itself calculated a couple of years ago that the new model should assure the regions 16,000 million euros more per year in resources.

Political war
All this causes that from the regions of the PP it is feared that the PSOE will approve the new autonomous financing model without agreement. He already did it in 2009, when the last regional framework was approved. Then the Government of José Luis Rodríguez Zapatero granted about 13,000 million euros of greater resources but did not agree to the reform with the PP, so it was approved in the Congress of Deputies with a single vote of advantage, with 176 support from PSOE, ERC, ICV, Canary Coalition and Unión del Pueblo Navarro, and with the opposition, among others, of the PP, CiU and BNG. The then deputy of CiU and now president of Labor Promotion, Josep Sánchez Llibre, said the following then: «To those who are going to support this autonomous financing law I say that they will commit a political murder with premeditation of the Statute of Catalonia».

The new model will be approved with the necessary consensus of an organic Law, since it changes the modification by changing the Law of Financing of Autonomous Financing (LOFCA). However, it is desirable to reach a broad consensus among the regions, which are mostly distributed PSOE (with seven regions, Aragon, Castilla-La Mancha, Asturias, Valencian Community, La Rioja, Extremadura and Balearic Islands) and PP (with five, Madrid, Andalusia, Galicia, Castilla y León and Murcia). Drums of war sound. .

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