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Brussels responds to Feijóo’s PP that “it may be more useful to support families and companies than to cut VAT”.

PP insists on tax cuts. But in Brussels they have as much light as Alberto Núñez Feijo, Isabel Diaz Ayudo or Juan Manuel Moreno Bonilla. If a few days ago the European Commission warned that tax revenues are “very necessary” to reduce them in the middle of the PP race, this Monday the European Commissioner for the Economy, Paolo Gentiloni, answered the questions of MEP Isabelle Benjumea. in the Economic Committee of the European Parliament.

Benjumea requested the European Commission’s involvement in his tax dispute with the Spanish government. But he didn’t get the kind words he expected, to the point of asking three times. The PP lawmaker tried to get Brussels to help with “tax breaks, income tax cuts, incentives” in supposed changes to the recovery plans agreed and approved by Brussels in the spring of 2021.

“Typically,” Gentiloni said, “my answer is that states should use what’s agreed upon in the recovery plan. An agreement was then reached and this is the basis of the Recovery and Resilience Tool. Then, there are a number of states that have seen their allocations increase or decrease [en España, aumentó en más de 7.000 millones por el agudo golpe de la pandemia] And that they see how to change their plans. If it included fiscal measures, we would examine that there is sustainability, because the Commission examines them not only from the point of view of whether it is legitimate to intervene at the fiscal level, but also from the point of view of sustainability. .

Indeed, Gentiloni reminded the PP’s new Secretary of European Funds that fiscal sustainability is linked to both spending and receipts. “In the current context, fiscal resources are very necessary, we need income,” community sources explain: “Spain now receives a lot of money from recovery and sustainability funds and, in its decision, has decided to transfer a good part. from this amount through autonomous communities. But that money will run out [en 2026]”.

Benjumea also insisted on support for the VAT cuts that the PP is championing. This Monday, the president of his party, Núñez Feijoo, called for a reduction in VAT on basic foods. “In general,” Gentiloni said, “we have very clear rules on the possibility of reducing VAT or consumption taxes and very clear guidelines on what can or cannot be decided last April, which is not that long ago. This is respect, it cannot be reduced beyond certain limits.”

In addition, Gentilon told the PP MEP: “In an emergency context, we have to be careful about reducing consumption taxes, because we have to support the energy transition, the climate transition, and it can be more useful to support vulnerable families and businesses. which reduces VAT or consumption tax. We demand that they not only reduce the VAT, because we can support it in other ways without delaying the climate transition.”

The Italian commissioner also explained to Benjumea that “the European Commission has been committed for years to reduce tax differences within the EU when they are the result of aggressive tax planning and threaten the single market and fair conditions.” This is a general objective in the country’s recommendations. The Commission does not intend to equalize the tax policies of the Member States, there are differences, but we try to avoid aggressive tax planning and use the global agreement on the 15% minimum corporate tax for multinational companies. In addition, the discussion in the member states is legitimate, it is not something that the European Commission should interfere with.”

Source: El Diario





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