PSOE and Unides Podemos reach an agreement for the 2023 State budget

MadridEsquerra and Junts are the example of what a divided government is, but the PSOE and Unides Podemos also often put their differences to the test. And it is already the third year that the negotiation of the State’s general budgets has been pushed to the limit, to the point that the agreement for the State’s general budgets for 2023 has arrived this Tuesday morning, just before the its approval in the council of ministers.

This Monday morning, Podemos had again listed the elements in dispute: the increase in the defense budget, the extension of paternity and maternity leaves linked to the family law and unblocking the housing law and the gag law in Congress What is mainly blocking the negotiations, however, is the financing of the measures that Unides Podemos would like to include in the family law.

“Sometimes I wonder how it is possible for a progressive government to discuss issues that are quite obvious,” added Díaz, who complained that the negotiations had been pushed to the limit and blamed the PSOE: “I don’t share this way of negotiating”. The second vice-president, however, promised not to leave the negotiating table until an agreement was reached. “We will continue to negotiate until the end”, had said in a press conference a few hours earlier the co-spokesman of the Lila formation Pablo Fernández, who demanded again not to increase military spending and to invest in social issues. From Ferraz, the number 3 of the PSOE, Santos Cerdán, recalled that the Spanish government fulfills its commitments. Sources from the two negotiating teams, however, assured that this issue was resolved. Díaz herself confirmed it this Monday evening. From the environment of Unides Podemos they pointed out that the increase in defense did not enter the spending ceiling, so that the new item was lower than what the PSOE would have wanted in the beginning. However, they did not detail the final figure.

The stability plan sent to Brussels in April included a commitment to reach a defense budget of 2% of GDP by 2030 and would begin to raise it by two tenths this year. While waiting to know what they will be aimed at, that document spoke of distributing them in “remuneration of employees, intermediate consumption and gross capital formation”. Socialist ministers have often claimed the increase by saying that in Spain there are many jobs linked to the military industry, although the second vice president, Yolanda Díaz, had warned that the executive was not considering dedicating this added expenditure to companies of the sector of Ferrol or Cadiz.

Beyond Defence, Podemos wanted to claim again the unblocking of the housing law, the big stone in the shoe of the Spanish coalition government. The minority partner has placed this rule in parallel with the accounts in 2020 and 202, and now he is doing it again because the differences with the amendments presented by the left-wing parties to Congress, which the PSOE rejects, are delaying its final approval. With regard to the gag law, Fernández cried out to the heavens this Monday for the fact that this rule has been in force longer with a socialist government than with that of the PP.

100 euros per child

Sources from both parties agreed that the real stumbling block was the financing of the extension of paternity and maternity leave to six months, extending the benefit of 100 euros to all families for raising and also that single-parent families with two children can access the same benefits as large families. All in all, it is linked to the family law piloted by the leader of Podemos, Ione Belarra, from the Ministry of Social Rights. “The negotiations are complete, either there is an agreement or there is not,” warned Díaz, hinting that they will not give in to any of the measures proposed by Unides Podemos.

In the end, the purple party was satisfied this Monday morning with the agreement reached in fiscal matters, which includes a tax on large fortunes, a small increase in capital income and a reduction in personal income tax casualties, among others. As the Minister of Finance already did with this fiscal plan, the PSOE assured on Monday that Montero would announce a press conference to explain the details “shortly”. It is expected that it can be this same Tuesday.

Review of the macroeconomic picture

However, budgets come with a review of the macroeconomic picture. The Spanish government estimates that the economy will grow by 2.1% in 2023. This is a cut of six tenths compared to the last GDP growth forecast published in July (2.7%). This is what the Minister of Economy, Nadia Calviño, anticipated yesterday, Monday, at the entrance to the meeting of the Eurogroup in Luxembourg.

Calviño also anticipated that for this 2022 the executive estimates that the GDP will grow by 4.4%, that is to say, one tenth more than expected in the summer (4.3%). “This is a cautious forecast. The indicators and data we have until September could allow for an even bigger upward revision,” the minister said. In fact, GDP growth in the third and fourth quarters remains to be seen.

Source: – Portada by

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