Podemos Reaches Agreement with PSOE on Energy Tax Reform Amidst Legislative Challenges
Podemos has announced its decision to vote in favor of a new tax reform following successful negotiations with the PSOE (Spanish Socialist Workers' Party). The proposed reform includes a tax specifically targeting energy companies, which has been a significant point of contention in recent discussions. Ione Belarra, the Secretary General of Podemos, expressed satisfaction with the outcome of the negotiations, highlighting the intense nature of the discussions that spanned several days.
According to Belarra, the agreement includes a commitment from the PSOE to present a bill to Congress that would establish the energy tax as a permanent fixture before the end of the year. In addition, the PSOE reportedly has the support of Junts for negotiations on this matter. Should the proposed regulation face delays or fail to pass, there is an assurance that the tax will be extended for an additional year, in line with prior agreements made with other political groups including ERC (Esquerra Republicana de Catalunya), EH Bildu, and BNG (Bloque Nacionalista Galego).
"I am very satisfied," Belarra stated in Congress, emphasizing that it was primarily Podemos that withstood the mounting media and political pressure. She reassured that the party has secured a guarantee from the current government that discussions will take place with all the involved political groups to push forward the implementation of the tax on energy companies. During her address, she urged Finance Minister Félix Bolaños, with whom she has been engaged in negotiations, to recognize the implications of Podemos standing firm on this issue, suggesting that it was crucial not only for Spain but also for the stability of the current government coalition.
To ensure the passage of the tax package, the PSOE required the support of the four Podemos deputies, either through direct votes in favor or abstentions. They similarly reached agreements with several other parties including Junts, PNV (Basque Nationalist Party), ERC, EH Bildu, and BNG, strengthening the coalition's legislative muscle.
Minister María Jesús Montero reiterated confidence that a consensual law would emerge before the December 31 deadline set by both PSOE and Podemos, congratulating all parties on their negotiation efforts. However, the reception from Junts regarding the agreement has been notably quiet, while PNV has expressed some discontent, stating that they were not consulted about the specifics of the agreement between PSOE and Podemos.
Going forward, PNV sources indicated they would evaluate their stance based on the proposals arising from the negotiating commission, underscoring the complexities and evolving dynamics of Spain's political landscape. This agreement marks a significant moment in the legislative efforts of Podemos and indicates potential shifts in Spain's fiscal policies concerning the energy sector.
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