The central and Basque governments will hold on March 11 a meeting of the Joint Commission of the Economic Concert in which, among other matters, the objectives of budgetary stability for Euskadi will be discussed. The Minister of Finance, Pedro Azpiazu, will once again put on the table the desirability of breaking the so-called spending rule to be able to invest beyond the narrow framework that the regulations impose for those movements, especially when the Basque Haciendas recorded a record of 2019 financing.
The meeting has closed after Congress approved the budget stability path on Thursday until 2023. The Government’s proposal, which will now be processed in the Senate, involves relaxing the path of correction of the public deficit to 1.8% of the budget. GDP in 2020, 1.5% in 2021, 1.2% in 2022 and 0.9% in 2023 which, according to the Minister of Finance, María Jesús Montero, will especially benefit the autonomous communities and Social Security .
In addition to addressing these objectives of budgetary stability with regard to Euskadi, the closing of the final quotas for 2017 and 2018, and the provisional corresponding to 2019, will be addressed in the Mixed Commission. At the last meeting of the Basque Finance Council, held last day 13, it was agreed that the liquidation of the 2019 quota – the sum that Euskadi pays the State for the non-transferred competencies – amounts to 947 million euros, four less than in 2018.
The Basque Executive values the optimal state of their accounts and wants to have more money to invest
Another of the issues that will be put on the table will be the presence of Basque institutions in supranational bodies in tax matters. The autonomous Executive claims to participate in the European Competitiveness Councils and the Ecofin.
Likewise, the Basque Government will remember that the Economic Concert establishes that if the central Executive creates new taxes, they must be arranged with Euskadi. It should be remembered that the Council of Ministers last week approved the technology tax and the one that will tax financial transactions, known as the Google Rate and the Tobin Rate, respectively.
The MOSS VAT application method will be discussed in the commission. This tax affects products purchased by Europeans in other countries and that, at present, are only charged to telecommunications, broadcasting and television services provided electronically, but which from 2021 will be applied to all intra-community distance sales that meet certain requirements.
The Councilors Pedro Azpiazu and Josu Erkoreka will attend the Basque Government; the Deputy Minister of Finance, Itziar Agirre, and the General Deputies of Álava, Bizkaia and Gipuzkoa.