Political Tensions Rise as PNV Aligns with Opposition to Repeal Energy Tax
In a significant maneuver within the Spanish Congress of Deputies, the Basque Nationalist Party (PNV) has announced its intention to align with the Popular Party (PP) and Vox to repeal the controversial tax on extraordinary profits for energy companies. This alignment complicates the extension of the tax, which the government had intended to pursue through a royal decree. Parliamentary sources have indicated that the PNV will support an amendment proposed by the PP within the broader fiscal package aimed at advancing the government's financial agenda.
Sources from the government, however, downplay the significance of the PNV’s decision. The government had initially reached agreements with the left-wing coalition partners, including Podemos, ERC, and EH Bildu, to extend this tax. This extension is scheduled to be discussed and decided upon by the Council of Ministers on the following Monday.
At present, the tax on extraordinary profits for energy companies faces significant opposition within Congress, chiefly from both the PNV and the Junts party. Once the tax is officially extended in the upcoming Council of Ministers meeting, its legality will automatically take effect upon publication in the Official State Gazette. Nonetheless, it will require validation by a majority in Congress within 30 days of its promulgation. The anticipated votes against from both Junts and PNV are poised to create hurdles in achieving the necessary majority.
The day's political drama is further underscored by the PP's recent success in amending the food waste prevention law. In a show of coalition politics, Junts has once again sided with the PP, allowing them to introduce several modifications, including facilitating the recruitment of seasonal workers and ensuring that donated food is exempt from VAT. These amendments reflect broader concerns about food security and waste reduction in Spain.
The uncertainties do not end with the energy tax repeal. Another critical legislative item on Thursday's agenda is the law focused on the efficiency of the Public Justice Service. This bill faces potential veto from Podemos, which has signaled that it may not lift its objection even if it means abstention. The contention revolves around an amendment that would expedite evictions in cases of occupation through illegal means.
As the Spanish political landscape remains in a state of flux, the interactions between these parties highlight ongoing challenges and a lack of consensus on key economic and social issues. The forthcoming days in Congress will be crucial as the government navigates through this complex web of alliances and oppositions, striving to secure the legislative support needed amidst a backdrop of competing interests and ideological divisions.
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