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A hasty negotiation to the end. One more notch that the coexistence in the Government between PSOE and Unidas Podemos is mortgaged to overcome their differences. Both formations have held an intense negotiation in the last 48 hours to reach a consensus on a proposal to present in the Congress Reconstruction Commission . One of the main points of friction has been the tax on the wealthy that Pablo Iglesias' party demanded and they reject the government's socialist sector, with Nadia Calviño and María Jesús Montero at the head. This time, even the direct dialogue between Pedro Sánchez and Pablo Iglesias did not save the purple petition .

What the document agreed between the two finally includes is a fiscal policy that advances towards a "greater collection capacity also guided by criteria of progressivity". "A fairer and more redistributive taxation, to ensure that the benefits of economic growth redound to the entire citizenry." It is a very generic proposal, without concretion, in which they ask to "reduce the fiscal gap with Europe" and a "progressivity of our fiscal system, in order to contribute more to those who have more so that those who need it receive the most", but without express mention of that wealth tax.

It is in line with the Government pact, where it is committed to increasing the tax rates by two points on the general basis for taxpayers with incomes above 130,000 euros and four points for the part that exceeds 300,000 euros.

The measure required by Unidas Podemos was intended to replace the Wealth tax and would introduce a progressive tax, between 2% and 3.5%, on assets that exceed one million and, according to Podemos's calculations, would contribute about 11,000 million euros. A figure too optimistic, "unreal" in the opinion of the prosecutors. While the purple people have spent the last few hours trying to convince their partners with "technical and economic arguments", the socialists have sought the resignation of this tax rate, which also demands ERC, knowing that it was a measure that could cause rejection of possible partners like Citizens.

Shock in the negotiation

The opposing positions on this point have delayed the negotiation until the last minute. At Unidas Podemos they admitted the clash with their coalition partner in this matter. "We think different;" "We do not agree," they pointed out from the purple formation in the last two days. Although they finally gave in to the pulse, softening his demand.

The aim of the PSOE has been to present a proposal together with its partner, instead of going separately, but not to close the doors to add parliamentary support. Rather on the contrary, that they were left wide open, hence the generality and little specificity in the economic conclusions of socialists and purple. In the spotlight, above all, Citizens. A formation with which Moncloa hopes to negotiate and that supports future Budgets. Therefore, a minimum agreement was sought, avoiding ties, which could be assumed and negotiated by other parties, which implied diluting the tax supported by Iglesias.

And it is that despite the fact that in this commission for the reconstruction of Congress parliamentary negotiation prevails, the Government has supervised and supervised the text presented by PSOE and United We Can, which in recent hours have exchanged different proposals for drafts. First, because they are the two parties that support it; and second because it is a document that will transfer proposals for the Executive to implement and, therefore, did not want there to be elements contrary to the opinion of its members.

Both Nadia Calviño , economic vice president, and María Jesús Montero , finance minister, were against the creation of this 'Covid tax', as Iglesias named it. They rejected from the outset creating a new tax figure, something that did not prevent the Podemos leader from challenging his colleagues, insisting, even in parliament, on his commitment to this tax. Pedro Sánchez agreed with the second vice president that Unidas Podemos would take this matter to Congress and not to the Council of Ministers, it would not do battle with him in the Government. Hence, the purple people considered themselves legitimate to fight for this "fiscal patriotism", as Iglesias came to define it, arguing that the wealthy "are willing to exercise their solidarity."

United Podemos was not the only party to demand this new tax rate. ERC also includes it in its reconstruction proposal. Specifically, he calls for "creating a tax on large fortunes of more than one million euros through a 3% tax rate."

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  • United We Can
  • PSOE
  • Pablo Iglesias
  • Citizens
  • We can
  • Pedro Sánchez
  • Nadia Calviño
  • Maria Jesus Montero
  • ERC
  • Europe
  • GDP
  • Politics
  • Taxes

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