• Agreement The new Housing Law will force large owners to lower rents and freeze the price for individuals

  • Policy All information on Budgets

Rushed negotiation to the end. Another year, long night to close the Budgets between the two partners of the coalition Government. This is reflected in the fact that while the Secretary of State for Social Rights, Nacho Álvarez, said this Tuesday morning in an interview on live television that there was no agreement, PSOE and United We can seal a pact in the Housing Law that involves unlocking the Budgets after deciding to intervene in the rental market, as Podemos claimed.

The agreement allows the autonomous communities to oblige by law large

owners

- considered as those who own more than 10 homes - to lower the rent in stressed areas, while providing for a price freeze in the case of small ones owners -those who have less than 10 homes, including those with only one apartment for rent-.

From the very beginning it has been an intense day within the coalition.

Succession of meetings.

Including the presence in the final of Pedro Sánchez and Yolanda Díaz

antes de la celebración del Consejo de Ministros. Los líderes de los dos socios del Gobierno han intervenido para terminar de desencallar la Ley de Vivienda y, por tanto, el acuerdo para que haya Presupuestos. Como ya sucediera en la etapa de Pablo Iglesias, su implicación se produce cuando todo está cerrado y sólo quedan unos puntos enquistados para despejar el pacto.

Las "distancias" que había a última hora de la noche el lunes se han limado en el transcurso de las horas, de manera que han obligado a cesiones para no demorar más los Presupuestos, pues la situación estaba tensionando a la coalición: los socialistas censuraba los "ultimátum" de sus socios, mientras que Unidas Podemos acusaba a sus colegas de querer "pasar el rodillo" sin cumplir con lo firmado.

The agreement has been confirmed by this newspaper both by

La Moncloa

and by the United We Can sector in the Government. The PSOE had pressed in recent days to bring public accounts to the Council of Ministers this Tuesday. Unidos Podemos rejected it due to the socialist refusal to regulate rents, as Pedro Sánchez and Pablo Iglesias had agreed a year ago. Now, as then, there has been white smoke on the horn. And now it is to be assumed that the chief executive will comply with the agreement.

Despite having reached an agreement on rents, the public accounts, however, have not been approved in the Council of Ministers this Tuesday.

It will be this Thursday 7, in an

extraordinary Council of Ministers

.

The claim of Pedro Sánchez, as this newspaper has reported, was to arrive at the PSOE congress, which is held from October 15 to 17, with the Budgets already approved.

Regulate large owners

The Minister of the Presidency, Félix Bolaños, took the reins of the negotiation by order of Sánchez.

This Monday the negotiation was permanent with representatives of United Podemos, such as the Minister of Social Affairs and Secretary General of Podemos, Ione Belarra.

In the last contacts, the

purple

sector

of the Government put on the table the proposal to distinguish between small owners-less than 10 houses- and large owners -more than 10 houses-, so that it was agreed to regulate the rent in the cases of the large owners, for example in the case of

vulture funds.

This measure to limit rental prices in the case of vulture funds was rejected at first by the socialist part of the Executive, but in the end it has been one of the meeting points.

The agreement contemplates the regulation of prices to lower rents by law based on the reference index for all contracts in

stressed market areas

and the withdrawal of tax incentives.

As for small owners - less than 10 homes - the agreement provides for a price freeze, as well as tax incentives to lower the price.

In principle, it would also affect only stressed areas.

It is not yet known how these areas will be defined, although there are some precedents, for example in Catalonia.

Government sources specify that the distinction could finally be not between large and small owners but between

natural or legal persons.

That is, individuals who could have more than 10 rented homes could not be forced to lower the price but they could access tax benefits if they lower the price of all their homes - it has to be in all of them.

The text is being outlined and will be polished in the coming days.

The new

Housing Law

also includes the obligation to reserve 30% of all promotions for protected housing and, of that third, half for social rent.

In addition, a tax on empty housing has been agreed, through the

IBI

surcharge

of up to 150%, which may be applied by the municipalities.

The measure has caused euphoria in Podemos, despite the fact that it does not cover the entire market, as contemplated by what was signed a year ago by Pablo Iglesias.

"For the first time in history there will be a Housing Law that will lower rent prices. A milestone that truly improves people's lives and shows that, with political will, there is no lobby or vulture fund that can stop progress. that our country needs ", the

purple ones

have pointed out

.

Corporation Tax at 15%

Another friction that has occurred during the negotiation has been the issue of taxation.

United We can press to set the corporation tax at 15%, as promoted by the

G-20

, the

OECD

and the president of the

United States

, Joe Biden.

A socialist sector was betting on waiting for the report commissioned from tax experts - scheduled for early 2022 - or for Europe to adopt a common rate for this tax.

However, this threshold was not a great stumbling block, because, for example, from the Treasury the door was always open to it.

In Unidos Podemos they explained that the legislature reaches its halfway point, that the fiscal reform is in the government pact and that "you have to put the first stone yes or yes."

Both PSOE and Unidas Podemos did assume the need to raise money to be able to maintain and expand the social measures contemplated in the so-called "social shield."

That is, collect in taxes to shield those aid.

And they believe that the way, until the economic recovery takes hold in the pockets of the citizens, is for those who have the most to pay more.

Juanma Moreno and Pedro Sánchez, in an act in Seville this Tuesday. EFE

Incentives for young people

The pact on housing also includes measures to try to anticipate the age of emancipation of young people in Spain.

Pedro Sánchez has announced the creation of a youth housing voucher that will mean an aid of 250 euros per month for young people between 18 and 35 years old with incomes and incomes of less than

23,700 euros

.

In addition, in vulnerable families this help will be supplemented with rent subsidies of up to 40%.

As explained by the Chief Executive, these are incentives so that young people can become independent at an earlier age than they do now and match the European average.


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Know more

  • United we can

  • PSOE

  • Nacho Alvarez Peralta

  • Minister council

  • Pablo Iglesias

  • Ione Belarra

  • State's general budgets

  • living place

  • Rental

GovernmentMoncloa lowers the "stumbling blocks" of Podemos and assumes that there will be Budgets before the PSOE congress

PoliticsPodemos warns Nadia Calviño that the budget agreement will not be imminent: "It is far away"

PoliticsFélix Bolaños and Ione Belarra intensify the negotiation of the Housing Law to unlock the Budgets

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