Congress Faces Crucial Voting on Fiscal Package and Justice Efficiency Law
This Thursday, the Congress of Spain will hold its last plenary session of the year, marking a pivotal moment as two significant regulations originating from the Senate are set for a vote: the fiscal package and the law concerning the efficiency of justice. These votes will serve as a critical test of the intricate web of support that the current government, led by Pedro Sánchez, depends on.
The fiscal package, which has demanded considerable effort to progress through legislative channels, is returning to the Lower House for final approval after modifications were made following recent negotiations involving Junts and the Popular Party (PP). Just earlier this week, Junts and the PP reached an agreement to revise the fiscal text, amid ongoing concerns surrounding the handling of tax matters in Congress.
Despite an arrangement between Junts and the ruling coalition of the PSOE, Junts, led by Carles Puigdemont, has underscored their position outside of the government bloc, asserting that their support cannot be automatically assumed. This underscores the volatility of political alliances and raises questions about the anticipated outcomes in the plenary.
The amendments proposed by Junts include reducing Value Added Tax (VAT) on dairy products to 4%, and exempting contributions for coaches or trainers of minors in nonprofit sports associations. The first amendment gained traction following support from the PP, whereas the second saw widespread backing from various parties including the PSOE. In the upcoming Congress session, there is a possibility that the amendments introduced in the Senate will be voted on separately, should any political group request it.
While Junts is expected to withhold support from the PP's amendments, the Popular Party remains optimistic about their chances. If the expected outcomes unfold without unexpected twists, the fiscal package will revert to a version previously negotiated with the government partners, which encompasses several controversial provisions including taxes on margin interest, banking commissions, and a tax increase on capital income exceeding 300,000 euros.
The second regulation on the agenda concerns the efficiency of the Public Justice Service, where Podemos has threatened not to lift its veto, even if it means abstaining from the vote. The purple party is opposing an amendment that would fast-track evictions in cases of unlawful occupancy, a change introduced and supported by various factions in the Senate, including the PNV and PP.
Alongside these critical discussions, the plenary will also address a report from committees concerning the prevention of food loss and waste, as well as validate a government decree providing assistance to those impacted by recent catastrophic flooding. This session concludes a parliamentary year that has seen the government navigate a tight legislative landscape, pushing numerous votes to the brink and losing over seventy, while managing to save others at the last minute. The outcome of this session could potentially bring the total to 25 regulations approved within the first year of the new legislature, setting the stage for political dynamics in the year to come.
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