The Socialists (PSOE) and Sumar have vowed, in the announcement of their agreement to a create a new Spanish coalition government, that they will "correct the underfunding of certain Autonomous Communities". In the document setting out the two-party accord, which does not make a single mention of Catalonia, the poor situation on autonomous funding matters suffered by the Valencian Country is discussed. Specifically, it places this territory in the category of "underfinanced autonomous communities". "We will promote a new autonomous financing model that guarantees the necessary resources so that the public can enjoy quality public services, based on the principles of equity, solidarity, financial autonomy, fiscal co-responsibility, financial sufficiency and institutional loyalty to guarantee that all people have equality of access to public services", the text asserts.
What's more, the PSOE-Sumar agreement states that "until this reform takes place, the Spanish state budget will guarantee the Valencian autonomous government and the rest of the underfunded autonomous communities the provision of public services at the same level as the rest of the state". In a joint appearance by Pedro Sánchez and Yolanda Díaz this Tuesday at the Reina Sofía museum in Madrid, the acting Spanish prime minister highlighted the importance of promoting "coexistence" between the different "peoples of Spain". And he announced that a new regional financing model would aim at build good neighbourliness among the multiple administrations around the state. In fact, he repeated one of his slogans he used most in the conflict he had with the Andalusian government presided over by the People's Party (PP) leader Juanma Moreno regarding water management, when he insisted on preserving "institutional loyalty".
The acting PM appealed to concepts such as "equity and solidarity" when he referred to this new financing model. "These are aspects that have always defined the left," he said, with Yolanda Díaz by his side, as he also vowed to reform Spain's law on local government financing. "We will establish a financial and competencies framework that guarantees the principle of financial sufficiency to ensure the provision of quality public services by the municipalities," the document states. In line with the speeches given by Sánchez and Díaz, the agreement promises to "reinforce and extend co-governance through dialogue, institutional loyalty and territorial collaboration".
Minutes earlier, the spokesperson for the Spanish government, Isabel Rodríguez, had defined the reform of the autonomous community financing model as one of the "pillars" of the pact between PSOE and Sumar. The minister of territorial policy also noted that regional funding is "one of the issues that was left pending in the last legislature", with the model having expired and with review pending for almost a decade, since 2014.
Tax on banking sector is maintained
The new taxation plan signed by PSOE and Sumar also foresees new measures to prevent fraud and tax evasion, with a review of taxes on banks and large companies. "We cannot afford to lose this income," explained the acting Spanish deputy prime minister and labour minister. What's more, the two political parties undertake to evaluate the tax on large estates "to move towards a new tax on wealth" within the framework of a financing model that make it possible "to end fiscal competition between territories". It is intended that a new system will "ensure that an effective tax level of 15% will be achieved on the business results of large companies through Company Tax."
A working week of 37.5 hours in 2025
One of the major agreements made by the PSOE and Sumar in this agreement to repeat the left-wing coalition is to reduce the working week to 37.5 hours in 2025 without this affecting workers' salaries. This reduction would be applied progressively, and in the already imminent 2024, the working week will be reduced to 38.5 hours. The agreement includes setting up a round table with the leading social players to monitor the results of this measure. In addition, the parties of Sánchez and Díaz promise new regulation on labour dismissals to adapt the Spanish law to European regulations as well as the approval of a law on internship to put an end to what the document calls "the stronghold of precariousness" that remains in Spain.
The gag law, again
The PSOE reiterates its commitment on Spain's infamous "Gag Law" - the Public Safety Act of 2015. The Socialists had already made a promise with Podemos to reform this law, but it could not be fulfilled in the previous legislature due to the opposition of ERC, Bildu and Junts, all of whom considered that the PSOE-Podemos reform was insufficient. This Tuesday, Pedro Sánchez went as far as to label the law pushed through by Mariano Rajoy's PP as "reactionary".
Green deals: fewer flights, less CO2
One of the key measures of this agreement is to carry forward one of the decisions already taken in some European states, as is the case of France: to reduce airplane flights within the state territory when there is a rail alternative that lasts less than two and a half hours, as would be the case of the Barcelona-Madrid air connection, which has a high speed rail alternative. The parties of Sánchez and Díaz also agreed to carry out a "green revolution" that will translate into a reform of the electricity market. They are also committed to air conditioning schools and care homes for the elderly.
Attack on health waiting lists and free dental care
In a commitment to improve Spanish healthcare, the PSOE and Sumar promise to cut waiting lists in the public system. They also agree to expand the portfolio of services for free dental care and help with the purchase of glasses.
Creation of the Palestinian State
In line with the declarations of not only Sumar but also the Spanish prime minister himself, the two parties have committed to work to achieve peace in the Middle East, between Israel and Palestine; and they guarantee their commitment to the recognition of the Palestinian state. The two-party accord, in fact, mentions the resolution on the subject by the Congress of Deputies of November 18th, 2014.