ERC Announces Pre-Agreement for State Budgets
The Spanish government commits itself to "put an end" to the control of the expenditure of the Generalitat
MadridERC has reached a preliminary agreement with the Spanish government for the general state budget. This has been announced by its spokesperson in Congress, Gabriel Rufián, in a press conference, emphasising that in the "next few hours" more details of the agreement are expected to be announced to confirm their backing of the 2021 accounts, which should give Pedro Sánchez's government some breathing space. "This is not a press conference to announce a closed agreement to the budgets, but a press conference to announce a pre-agreement," Rufián began, since the final agreement will have to be ratified by the party leadership, probably tomorrow, Wednesday morning.
So far, there have been five main agreements reached. Firstly, the extension of the moratorium on social security contributions for the self-employed until March 2021, i.e. one more quarter, with a commitment to extend it in line with the circumstances of the pandemic. Second, the creation of a bilateral committee for "a fair and progressive total tax reform", with the creation of a specific working group for the reform of the tax on large fortunes. Thirdly, "to put an end to fiscal dumping in Madrid", since, according to Rufián, the right wing has set up a "fiscal paradise" in the Spanish capital, despite the fact that it has not wanted to advance in the way that the Moncloa will do this.
Fourthly, the settlement of the existing debt of the Ministry of Education with the Generalitat since 2005 in terms of transfers for scholarships. Rufián has assured that this debt will be settled but has not advanced the amount. And finally, and according to ERC the most important element, the "end of financial control by the State over the Generalitat". This spells the end to spending control, since in 2018 Sánchez had already lifted control of the accounts. For the ERC spokesman in Congress, this meant "financial direct rule".
Sánchez has the necessary majority at his finger tips
The ERC press conference comes just hours after the PNV confirmed this morning its vote in favour of the state budget after the Spanish government accepted "more than half" of the amendments, according to its spokesman in Congress, Aitor Esteban. EH Bildu wil also back the deal if its members ratify it in the a ballot on Thursday.
Government spokesperson María Jesús Montero was optimistic on Tuesday about the approval of the accounts next week in Congress. During the press conference following the Council of Ministers, she did not want to go into details, but pointed out that the negotiations were going well and that in the next few days we would see more announcements similar to those of the PNV.
The Moncloa was able to change the strategy of three months ago. Pedro Sánchez started the political course by looking to Ciudadanos for the approval of the accounts. In mid-September it seemed that ERC, with the electoral horizon of the Catalan elections, would end up distancing itself from the negotiations. But nothing could be further from the truth. In recent weeks in Madrid there has been a change in the script.
PSOE sources point out that the strategy of flirting with Ciudadanos was a way of trying to lower the cost of a possible deal and of making it impossible for ERC to condition its survival as it did in 2019. But the strategy has also involved Unidas Podemos, with a clear offensive to keep Ciudadanos away, which culminated yesterday, Monday, with Ciudadanos leader Inés Arrimadas admitting that the chance of her party voting in favour of the budget was growing smaller.
