Brussels says it is working with the Spanish Government on its tax harmonization: "More must be collected"

• Escrivá proposes a fiscal recentralization and limit the transfer of taxes to the CCAA

The

is

of Spain on the

that, according to component 28 of the Recovery Plan, will come into force in the

and will include

As confirmed on Wednesday by sources from the European Commission, "the reform is in the oven, it is a work in progress" and its objective is "to achieve

Specifically, Component 28 states that the reform will address "the need to

between the

to

between communities", a commitment which is now the subject of controversy after this week Andalusia has announced the abolition of the Wealth Tax and the Region of Murcia has announced a reduction in personal income tax and has stated that it is also studying the elimination of wealth taxation.

Community sources have highlighted that

and that they are now "starting to work with the Spanish authorities" on its design.

Precisely this Wednesday, a visit to Madrid by senior officials from Brussels ends to analyze with the Executive how the deployment of the Recovery Plan is going and the execution of investments and reforms.

"We cannot say anything about the tax reform itself because it

, but it is very important, especially in the current context, because support must be given to the most needy households and the impact of rising prices must be mitigated.

is needed and collection needs to be as efficient and effective as possible. The tax system must be adapted", those same sources have stressed.

In Brussels they are sure that

since otherwise "disbursement is put at risk and that is not something that any country wants."

The Commission authorities

prepared by the experts and its recommendations and have also received the Government's plans on its translation into a reform.

His message is aligned with that of the Executive

, which defends that there are no tax cuts in order to maintain a level of public spending that guarantees a level of well-being and that allows helping the most vulnerable;

against the will to reduce taxes promulgated by the PP and the communities governed by this party, such as Andalusia, Madrid or Murcia.

The Minister of Finance,

has indicated today in statements to the press in Congress that the Government is

and wants to

to avoid the "downward fiscal competition" between communities.

pension reform

In addition to the tax reform, the Government has yet to address the

remainder of the year , which will be precisely the one that focuses on guaranteeing the

of the Social Security system, since the first part that guaranteed sufficiency was already approved.

The Commission does not want to assess whether or not the reform will guarantee the sustainability of the system until the final content of the approved measures is known, despite the doubts that have emerged about the Intergenerational Equity Mechanism.

The Commissioner for Economic Affairs, Paolo Gentiloni, already said in an interview with EL MUNDO in May that it would not be evaluated until 2023.

They hope that in the first quarter of 2023, when Spain makes the next request for payment, it will officially present the approved reforms in this regard (the

for calculating the pension or the

is planned ), and it will be at that moment when the authorities will do numbers and decide if the reform fulfills its purpose of guaranteeing sustainability.

Even so, since the dialogue with the Government is continuous, they

with the calculations.

In Brussels they know that "

, so they have to "

, while pensions continue to be adequate for people".

"It is a very sensitive point in the political sphere," they point out, so they value "the ambition of the Government that, on its own initiative, wants to improve the sustainability of the system."

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• personal income tax

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