Junts and PNV stop the Government's attempt to raise taxes

El complex Spanish parliamentary scenario makes it difficult to approve the Tax Reform proposed by the Government for 2025. The administration is at a crossroads after abandoning its initial plan for a permanent tax on energy companies, a key point in the investiture agreements. This change of course sought to secure the support of together y GNP to the fiscal package. However, both parties reject the main measure of the reform: a 8% tax on private health insurance, proposal supported by Sumar, which aims to reduce tax incentives for private healthcare.

Fragile consensus between PSOE and Sumar
The agreement between PSOE and Sumar to advance this reform was short-lived. The star measure, the imposition of 21% VAT on tourist apartments, requires the approval of the European Commission, while the new tax on private health insurance is already facing resistance. Junts welcomed the halt to the tax on energy companies, although the Government was still trying to maintain the measure. This Tuesday, Aitor Esteban, spokesman for the PNV in Congress, expressed his disagreement with the PSOE's position and Sumar and warned about the low chances of progress of this project in the Treasury Commission.

Strategy to address the risk of legislative failure
The Government has decided to postpone the vote on a tax law in the Finance Committee to gain time. However, the agreement with Junts and PNV to maintain the tax on banks and withdraw the tax on energy companies contrasts with the demands of ERC, Bildu, We can y Sumar to maintain both taxes. Esteban described the situation as a “mess” and believes that the proposals by Bildu and ERC distort the objective of the law. For their part, ERC and Bildu continue to press for both taxes to be included in the final ruling.

Internal tensions and possible adjustments to the reform
Sumar shows discomfort with the current lack of consensus. Txema Pebble, general secretary of Sumar, noted that the tax on energy companies remains on their agenda, and Aina Vidal, deputy spokesperson, advocated putting pressure on the PSOE to strengthen the agreement. Despite the lack of support, government sources say that the project will go ahead, although the possibility of postponing the meeting of the Finance Committee scheduled for Thursday is being considered.