• Politics Madrid will take tax harmonization to the Constitutional Court if the Government prevents it from reducing taxes

The Government has communicated to the autonomous communities the distribution of the 10,000 million euros from European funds that will be allocated to the regions, and in this process the criteria used by the Ministry of Finance has obviously benefited

Andalusia and Catalonia for above the Community of Madrid

.

According to the distribution made official this Monday by the department headed by María Jesús Montero, Andalusia will receive 1,881 million between 2021 and 2022, which represents 18.8% of the total funds.

Catalonia has been assigned 1,706 million, 17.1%.

And in third place is Madrid, although at a notable distance from the first two regions with 1,284 million, which represents 12.8%.

In addition,

very close to that figure is the Valencian Community

, with 1,254 million of the total that represents 12.5% ​​of all funds.

The Treasury, which already announced in the Budgets that Andalusia and Catalonia would be the most benefited regions, explains that the distribution has been made

based on three indicators

.

"The first one is aimed at measuring the impact of the pandemic on the wealth of each Autonomous Community. This indicator has a weight equivalent to 2/3 of the total distribution," says the Ministry.

"The second indicator measures the impact of the crisis on unemployment, with a weight in the total distribution equal to 2/9 of the allocation," he adds, and the third "measures the impact of the crisis on youth unemployment" and " it has a weight of 1/9 of the total allocation ".

However, it seems

unlikely that the explanation from the Treasury will

convince the Community of Madrid and its president, Isabel Díaz Ayuso

, who from the moment she became president has been in a tough confrontation with the Government and, especially , with the head of the Treasury and also a spokesperson for the Executive.

The disputes focus largely on the tax area.

Montero, already when she was part of the Junta de Andalucía as Minister of Finance,

accused Madrid of incurring in

fiscal

dumping

.

And that complaint was already repeated from the Ministry of Finance, which has caused great anger in the Community.

All this tension has only grown after the Government announced that it wants to carry out fiscal harmonization so that some communities cannot "de facto eliminate some taxes," they explain in the Treasury.

Or put another way: so that Madrid cannot discount 100% of the Heritage tax.

Díaz Ayuso and his Treasury council, Javier Fernández-Lasquetty, consider that this measure is a clear limitation of their fiscal capacity and have promised to face the Executive, even reaching the Constitutional Court if necessary.

And in the midst of this situation,

the distribution of European funds that has been made official this Monday will not help bring positions closer together

.

Use of funds

In its communication, the Treasury recalls that the resources from European funds "must be used to finance, fundamentally,

operations in the field of education, health and social services

, to mitigate the impact suffered on them as a result of the pandemic, as well as to transform them strategically for the future. "

That is, they add, "to reinforce basic public policies with additional items in a context of crisis in which they have proven to be the safety net for millions of citizens."

According to the criteria of The Trust Project

Know more

See links of interest

  • Check Christmas Lottery

  • Wolverhampton Wanderers - Tottenham Hotspur

  • Real Madrid - Barça