We can ask for more spending, more taxes and zero cuts

• Government: Pablo Iglesias opens up not to be in dialogue with Citizens if Pedro Sánchez agrees with him before

• Politics: Disagreements with Podemos delay 'sine die' Budgets

As is customary between the PSOE and United We Can, after several days of tension in the Government, everything is going smoothly again.

The meeting that Pedro Sánchez and Pablo Iglesias held in Moncloa this Monday served, once again, as an umbrella to weather the internal downpour and lay the foundations for the negotiation for the 2021 Budgets. United We can have achieved the leading role it demanded -including the media meeting yesterday with the Minister of Finance - and the negotiation with Ciudadanos is leveled when the vetoes are overthrown.

The PSOE and Podemos, after days of exchanging documents and emails, are preparing to design a draft of the public accounts that they will present to the rest of the formations.

Starting, in the negotiation the

They ask for a progressive tax reform - a rise in taxes on high incomes -, a powerful public investment and shield social measures.

They reject all kinds of cuts.

These principles are the ones that have been transferred from the United We can sector to the PSOE.

And sure that yesterday took time in the meeting between

, Secretary of State for Social Rights and right hand of Iglesias, and María Jesús Montero, Minister of Finance.

The socialist bloc took these requests for granted and the greatest fear is that the talks will run aground on the issue of taxation.

The

have managed to place their financial manager in the negotiation, at least as a colleague of Montero, and they do not believe that their proposals could generate a problem.

Government sources point out that both partners share the need to present "expansive" budgets, where there is no room for cuts, first because they have the historical help of European funds and, second, because that they consider in Podemos would be a roadmap of the PP and not of an Executive who defines himself progressive.

They also point out that the head of the Executive, yesterday in the Ser, assured that the Government program will be the "base" of the budget project and that it includes the increase in taxes.

They refer to this to put it on the table, although they assume that they are not in a position to impose it as an immovable red line and that, depending on the dialogue with other parties, it could be postponed for next year or even articulate a more ethereal tax reform and decaffeinated, which would allow Podemos to display an achievement before their own.

And in these exceptions they coincide with the reading made by the socialist part of the Government.

They admit that the taxation debate may be the most difficult issue to close an internal pact on next year's accounts, but they consider that the pandemic has changed the situation so much that Podemos will have to keep pace with their requests.

That is why they believe that it will be possible to reach a fiscal pact because it is not the time to carry out the great reform that adds more uncertainty to companies than there already is.

The very spokesperson for the Government and Minister of Finance, María Jesús Montero, said it publicly yesterday: “We cannot be blind to the economic situation.

We have throughout the legislature a whole agenda for progressive tax reform.

Fiscal stimulus measures

In fact, in the socialist part of the Executive, they believe that just parking the tax increase is what will favor the support of Citizens.

That and all the fiscal stimulus and business support measures.

In the PSOE they see a Budget with the favorable votes of Podemos and Ciudadanos as very viable because the purple ones can be convinced with the social proposal and the

with the measures for SMEs and the self-employed.

It remains to be seen how this three-way negotiation is articulated, after Podemos has claimed more prominence.

As they are a Coalition Government Budget, Montero yesterday assumed that Podemos will be at the negotiating table with the rest of the forces.

Socialists know that this makes Citizens uncomfortable.

Inés Arrimadas wants to negotiate with the Treasury, but in the hierarchical rank the singing voice continues to be the minister.

And in any case they do not think that the presence of Podemos will dissuade Ciudadanos.

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Know more

• We can

• Citizens

• PSOE

• United we can

• Maria Jesus Montero

• PP

• Pablo Iglesias

• Pedro Sanchez

• Inés Arrimadas

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