Spain’s Socialist and Podemos parties present coalition programme
5582 Mins Read
Spain’s Socialist and radical left Podemos parties on Monday outlined corporate tax increases and more worker-friendly labour legislation as they unveiled their programme for the country’s first coalition government since the return of democracy 44 years ago.
The agreement, which includes proposals to lift the minimum wage to 60 per cent of average national wages, helps clear the way for a government led by Pedro Sánchez, the Socialist leader, to take office following an inconclusive general election in November.
“This is the programme of a progressive coalition,” Mr Sánchez told parliament. “This is our opportunity to build a juster society.”
The PSOE won the repeat general election in November, but as at the April polls fell well short of a majority. In the wake of the vote last month Sánchez and Iglesias announced that they had reached a deal to form a coalition government. Sánchez will still need the support or abstention of other parties in order to get back into power, but this looks increasingly likely to happen early in the New Year given reports that the PSOE and the Catalan Republican Left (ERC) have nearly closed a deal to secure the latter’s abstention at an investiture vote.
According to the governing deal, which the parties are set to formally announce today at 5pm, income tax for those earning more than €130,000 a year will rise by two percentage points, and by four percentage points for those who earn more than €300,000. Capital gains tax will also rise by four percentage points above €140,000, to 27% compared to the current 23%. Corporate tax will have a new minimum rate of 15%, while banks and energy firms will have to pay 18%.
The parties are also planning to urgently ditch a law that allows for companies to fire workers who take official sick leave, as well as introducing measures to combat precarious and temporary jobs.
Meanwhile, in other news Spain’s State Attorney said Monday that jailed Catalan separatist Oriol Junqueras should be temporarily released to collect his European MP credentials, The Local reports.
El Pais reports that Junqueras won a seat in the European Parliament in the May 26 vote, but was unable to be sworn in because he was in preventive custody in Soto del Real prison in Madrid ahead of the conclusion of the trial for his role in the 2017 Catalan independence drive. In October, the Spanish Supreme Court found the Catalan Republican Left (ERC) leader guilty of sedition and misuse of public funds, and sentenced him to 13 years in prison.
