• Analysis The summit between Ximo Puig and Juanma Moreno curls the Andalusian PSOE

  • Elections PP and PSOE activate the machinery to push their barons to an electoral advance

Andalusia and Valencia will request an increase in the capacity of the autonomous communities to decide on the tax portfolio, especially in environmental matters, according to the agreement reached this Tuesday by the president of the Board, Juanma Moreno, and that of the Generalitat of Valencia, Ximo Puig, meeting in Seville to establish a common position and demand from the Government a

"temporary compensation fund"

while a new regional financing model is being negotiated.

"The Generalitat Valenciana and the Junta de Andalucía are supporters of

improve the

tax capacity

of the autonomous communities, in order to increase their

fiscal co-responsibility

in the necessary scenario of modernization of our tax structure and especially in terms of environmental taxation ", literally says the joint document made public after the meeting of both presidents, a I find that it has generated some internal tensions in the PSOE because it reveals the lack of diligence of the Ministry of Finance in solving an inequality of treatment denounced by the worst-financed communities, including Andalusia and Valencia, but also Murcia and Castilla-La Mancha.

Both Puig and Moreno have ruled out expanding the tax burden on citizens, but they do claim margin to

"rationalize" taxes (Ximo Puig) and "reorder them" (Juanma Moreno)

according to the singularities of each autonomous community.

In the document signed this Tuesday by the two presidents, it is stated that the Autonomous Financing System continues to be "

discriminatory, complex and not very transparent

.

"

"Currently, it continues to generate resource differences between communities of more than 30 percentage points per adjusted inhabitant."

"Doing nothing does not solve anything. Maintaining this situation

is not sustainable,

" said Ximo Puig before the indefinite extension of the current model and the lack of progress in a reform that the Government of Pedro Sánchez has postponed since the beginning of the legislature.

Moreno believes that it is possible to reach an agreement not only with the deficit communities but with all the regional administrations and has insisted that this alliance between Andalusia and Valencia

"is not a front"

nor is it

"going against anyone."

"We cannot stand idly by because we are damaging the convergence of the communities as a whole." "Spain needs more conversation," Ximo Puig pointed out, citing

Salvador Madariaga

. "The agreements generate tension but there is no alternative to the agreements," he added.

Both Andalusian and Valencian governments make an analysis of what the current financing model has meant, which suffers from a

"global deficit"

that has prevented "maintaining the coverage of the real levels of provision of services to which the agreement aspired in which was based on the system when it was approved in 2009, despite the volume of additional resources provided by this system in order to reinforce the Welfare State, compared to the 2002 system ". This global deficit for all the communities of the common system is calculated at

16,400 million

euros.

"The

capacity

of the autonomous communities of common regime to decide on the level of their income is

limited

because they lack regulatory capacity in indirect taxation and management capacity of large taxes in which they participate. This lack of regulatory capacity in Indirect taxation has meant a reduction in resources for the autonomous communities of more than

72,400 million

euros between 2010 and 2018, with concrete

11,400 million

in the last year ", states the document.

"Therefore, it is necessary for the sake of the principle of Institutional Loyalty that the autonomous communities can be participants in the decisions that affect their income," he adds.

The set of autonomous communities require more funding, conclude both presidents. Therefore, the new autonomous financing model "must provide

more resources to all the autonomous communities

(vertical equity) and correct horizontal inequity through a system that has as its main distribution criteria the beneficiaries of basic public services."

Andalusia and Valencia defend that the main distribution criterion is that which has to do with the concept of

adjusted population

, "a concept that must be agreed upon by all the autonomous communities".

With the Covid crisis, the "asymmetry" between autonomous communities "becomes more dramatic, since it

affects the ability of communities to face reconstruction

.

"

Both communities are aware that a new financing model requires time and that is why they propose a compensatory fund that temporarily solves the main problems of the current distribution

"without harming anyone

.

"

They also demand a greater role for the autonomous communities in the management of European

Next Generation

funds

and in the Recovery, Transformation and Resilience Plan, "both in the destination of resources and in the design of control and monitoring mechanisms."

The socialist Ximo Puig has made the demand for a new

regional financing model

the objective of the legislature and his firmness in the face of the discomfort that his position generates in the Pedro Sánchez Government has even brought him praise from the PP Government and Cs in Andalusia, whose vice president, Juan Marín, described him this Monday as

a "brave" president

.

The political situation makes it easier for President Moreno, but he has also had to deal with the reservations of Pablo Casado's PP, who distrust a transversal alliance with a socialist administration.

Moreno supported in his day, in 2018, the proposal presented by the Government of Susana Díaz to reform the regional financing model, which now gives

an added legitimacy

to defend his position and claim the complicity of the Andalusian PSOE.

That proposal had the signature of the then counselor, María Jesús Montero, who is now

Minister of Finance

and therefore it is up to her to propose the reform and initiate negotiations with the autonomous communities.

According to the criteria of The Trust Project

Know more

  • Ximo Puig

  • Valencia

  • Pedro Sanchez

  • Andalusia

  • PP

  • Coronavirus

  • Spain

  • PSOE

  • Pablo Casado

  • Juan Marin

  • Citizens

  • Castilla la Mancha

  • Murcia

  • Seville

  • Covid 19

  • Juan Manuel Moreno Bonilla

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