Montero proposes growing the switch of private revenue tax and VAT to the communities to enhance regional financing | Economy | EUROtoday

The Minister of Finance and first vice chairman of the Government, María Jesús Montero, is presenting this Friday the proposal to reform the regional financing system, a matter that has been pending since 2014. “It is a reform that we committed to at the beginning of the legislature and on which we have been working for a long time,” stated the quantity two of the PSOE firstly of her look.

The new mannequin will supply extra assets to the autonomous communities, in command of offering primary providers. The largest injection of assets might be carried out with an growth of the a part of private revenue tax and VAT that’s transferred to the communities. The present system offers that half of what’s collected from this tax is transferred to the widespread fund that can finance the territories – which in flip is used for the fundamental public providers that they supply -, a proportion that in line with the brand new proposal would now rise to 55% and 56.5%, respectively, Montero detailed.

The Treasury plan contemplates that the communities will obtain a further 21,000 million from the regional financing system in 2027, in line with the proposal introduced by Montero. This quantity can be relevant subsequent 12 months, for a complete of 224,507 million euros, Montero detailed.

The presentation of the brand new mannequin comes a day after the chief of ERC, Oriol Junqueras, met with the President of the Government, Pedro Sánchez, and introduced that his social gathering and the Executive had reached a “good agreement” that may assure extra assets for all territories.

The subsequent step is the Fiscal and Financial Policy Council (CPFF), which might be held subsequent Wednesday, by which Montero will meet with the Treasury councilors of all of the communities, nearly all of whom have already proven their discomfort with the bilateral negotiation between the Government and Catalonia. Afterwards, bilateral conferences might be held with every autonomy, as defined by the vice chairman, after which it will likely be authorised within the Council of Ministers in order that it will possibly start to be processed in Congress as an natural legislation. “We hope that the process is agile enough for the model to come into force next year,” stated Montero.

Andalusia, the place Montero is operating as a candidate within the subsequent regional elections, would be the group the place the assets of the financing system will improve essentially the most, as much as 4,846 million, adopted by Catalonia (4,686 million), Valencian Community (3,669) and Madrid (2,555). The solely ones that may lose assets can be Cantabria and Extremadura, two of the best-financed territories, however the vice chairman has assured that they are going to be compensated in order that they don’t endure any loss with the brand new mannequin.