The budget law was approved by 188 votes in favor in the 350-seat chamber. Eleven political parties supported it, “which is a sign of the government’s capacity for dialogue,” the Ministry of Finance congratulated itself in a statement.
This vote should allow the government of the socialist Pedro Sánchez, with a minority in Congress, to exhaust the legislature, with the possibility for the Executive to extend the budgets until the general elections scheduled at the latest for two years.
The budgets for “social justice” and “strengthening the cohesion” of the country, “will promote stability, confidence and security in our country,” said the government spokeswoman, Isabel Rodríguez.
To be definitively approved, the text must obtain the green light from the Senate within a month, but the process is considered a formality.
“Spain for the second year in a row is going to have general State budgets in time and form,” congratulated on Twitter the Vice President of Economy, Nadia Calviño.
The budgets foresee a record level of spending of 240,000 million euros, financed in part with 27,600 million euros from the European macro-plan for economic re-boost, of which Spain is one of the main beneficiaries, with 140,000 million euros over six years.
They include a series of social measures, such as the revaluation of pensions and salaries of civil servants, which will increase by 2% on January 1, as well as various measures against the precariousness of young people.
Among the latter, a monthly check of 250 euros ($ 280) to help low-income people between 18 and 35 years of age pay rent, and a cultural check of 400 euros ($ 450) for 18-year-olds spend on cultural activities.
These measures were mainly advocated by We can, a minor partner of the government coalition, which conditioned its support to the adoption of rules to regulate the prices of rents to large landlords in areas where the real estate market is stressed.
To approve the budgets, the government agreed to counterparts in exchange for the support of several small parties, including the Catalan independentists from ERC and the Basque separatists of eh Bildu, which includes heirs to the political arm of the defunct armed separatist band ETA.
Thus, the government promised to abolish tolls on certain highways and implement a measure that obliges audiovisual platforms to ensure at least 6% of their production in Catalan, Basque or Galician.
These budgets with a strong social component should allow Spain to consolidate its economic recovery, threatened by galloping inflation (5.4% in October) and a slower than expected reactivation of the tourism sector, on which 13% of jobs depend.
The Spanish economy, one of the most affected by the Covid-19 pandemic with a fall in its Gross Domestic Product (GDP) of 10.8% in 2020, should not recover its pre-crisis level before 2023, according to the European Commission.
The bad economic news has put pressure on the government, confronted by a growing social discontent, especially in the metallurgy and transport sector, who threaten a strike when Christmas approaches.
It is necessary that the recovery “reach all citizens,” acknowledged Nadia Calviño, assuring that the budgets will allow “relaunching economic growth” and “reducing inequality.”
In its budgets, the Executive plans to reduce the public deficit to 5% next year, after reaching 8.4% in 2021. But it bases it on a growth forecast of 7% in 2022, deemed unrealistic by many economists.
Source From: Ambito
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