It is often said that the person who sits next to the President of the Government is the one who sets the political profile of the executive. Maria Jesús Montero, until now Minister of Finance, has been elected today as First Vice-President of the Government and this will surely be reflected in a greater specific weight of this portfolio. Nadia Calviño, who occupied that chair until now and who is 'responsible' for this change of chairs, marked during her mandate a clear economic profile in the previous four years, always with an eye on Europe, where she will end up chairing the EIB.
Now, Montero's appointment as first vice-president marks a clear focus on tax collection. The government already announced a few months ago that, despite recent increases, the tax burden will continue to rise in 2024. In its budget plan for next year, which the government sent to the European Commission last October, it included an increase in the tax burden of around 7.3 billion euros, as well as an increase in revenue of around 4 billion for the Social Security. And all this without the new governing body having been constituted.
A week ago we learned how the European Union will require Spain next year to cut 13,500 million in debt and 7,000 million in deficit. Tougher adjustments have been established for those countries with a public debt above 90% of GDP, and therefore, they will have to reduce it by at least one point annually. With this starting point, Spain will face the reactivation of the European fiscal rules, which have been suspended for almost 4 years, which gave free rein to the member countries to recover from the pandemic and the war in Ukraine. Seven days ago, these parameters were reformed.
In short, the first vice-presidency assigned to the Ministry of Finance makes it clear that the reduction of public debt and tax collection will be the main protagonists of the next legislature, leaving other aspects of the economy to take a back seat.
Santiago Gonzalez, Tax Partner of PKF Attest
Source: Expansion
