PP-Vox deal in Andalusia: vice-presidency and tax cuts
Moreno hands a vice-presidency to Vox in exchange for 150 measures: income tax cuts, an end to green taxes and migration measures. Does governability win or lose?
English · Original discussion in Spanish · Published
PP-Vox deal in Andalusia: Gavira as vice-president and tax cuts
Juanma Moreno has been re-elected president of the Junta de Andalucía (the regional government of Andalusia, Spain) with the votes of the PP and Vox, in a coalition that gives Abascal's party a vice-presidency. Manuel Gavira, Vox's parliamentary spokesman, will take the post. The agreement includes 150 measures and guarantees the approval of four budgets. In return, the PP adopts Vox's national priorities, according to the text of the deal.
The economic keys to the agreement
The document, leaked by The Objective, details a 1% cut in personal income tax (IRPF) for employment income below 60,000 euros. Deductions are expanded for children, disability, large families and school expenses, and even one is included for the purchase of contact lenses. Three environmental taxes are scrapped, the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales) is cut by one point and fees are lowered for the primary sector. On immigration, the agreement foresees verifying the age of unaccompanied minors, auditing spending and eliminating subsidies to NGOs that promote illegal immigration. Squatters will be excluded from social housing.
Lights and shadows of the deal
For some, the agreement is the first step towards a lasting PP-Vox coalition at the national level. Others see it as a concession by the PP in exchange for stability, without touching the clientelist structure of the Junta. A more sceptical analysis holds that the only real gains are the tax cuts and that the PP has committed not to push a pogre agenda for four years. The question is whether the clean-up of the PSOE's remnants in the Andalusian administration, which some had hoped for, will turn out to be a damp squib.
With slightly lower taxes and a government keeping one eye on the right, Andalusia launches its coalition. What remains to be seen is whether the tax cuts translate into adequate public services or whether the bill is paid by the most vulnerable.
Juanma Moreno has been re-elected president of the Junta de Andalucía (the regional government of Andalusia, Spain) with the votes of the PP and Vox, in a coalition that gives Abascal's party a vice-presidency. Manuel Gavira, Vox's parliamentary spokesman, will take the post. The agreement includes 150 measures and guarantees the approval of four budgets. In return, the PP adopts Vox's national priorities, according to the text of the deal.
The economic keys to the agreement
The document, leaked by The Objective, details a 1% cut in personal income tax (IRPF) for employment income below 60,000 euros. Deductions are expanded for children, disability, large families and school expenses, and even one is included for the purchase of contact lenses. Three environmental taxes are scrapped, the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales) is cut by one point and fees are lowered for the primary sector. On immigration, the agreement foresees verifying the age of unaccompanied minors, auditing spending and eliminating subsidies to NGOs that promote illegal immigration. Squatters will be excluded from social housing.
Lights and shadows of the deal
For some, the agreement is the first step towards a lasting PP-Vox coalition at the national level. Others see it as a concession by the PP in exchange for stability, without touching the clientelist structure of the Junta. A more sceptical analysis holds that the only real gains are the tax cuts and that the PP has committed not to push a pogre agenda for four years. The question is whether the clean-up of the PSOE's remnants in the Andalusian administration, which some had hoped for, will turn out to be a damp squib.
With slightly lower taxes and a government keeping one eye on the right, Andalusia launches its coalition. What remains to be seen is whether the tax cuts translate into adequate public services or whether the bill is paid by the most vulnerable.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (21 replies).
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