Last Friday the Fiscal and Financial Policy Council (CPFF) approved a deficit path for the more benevolent communities than the current one (0.2% instead of 0%), with the aim of placating the regional dissatisfaction of VAT on 2017 that stopped charging (2,500 million euros). But it is not only a war of autonomous communities. The municipalities have joined her and those of the PP have already announced that they will go to court to claim 750 million also of VAT.
To calm the spirits, this Monday the Government communicated to the municipalities the new fiscal path that it proposes for the period 2020 to 2023, with a zero deficit forecast in these four years, which softens the overall deficit target of all public administrations that will be approved this Tuesday at the Council of Ministers. Further, expands the expense margin of the regions by one tenth, up to 2.9% and will launch an extra of the FLA (Autonomous Liquidity Fund) to give them a more flexible line of financing at 0% and thus cover the payment to suppliers since they were stopped paying the VAT month of 2017 that the reform of that Tax prevented liquidation in 2019.
These measures are in line with those taken last Friday with the communities and seek the same ultimate goal: reduce a tension that does not understand political color, both regional presidents of the PP and the PSOE are willing to go to court to claim this money, who do not understand how it could have been lost. The argument of the Treasury is that the communities spent 2,500 million of VAT last year and to this attributes the increase in the deficit they experienced.
The measures were announced by the Minister of Finance, María Jesús Montero, at the end of the meeting of the National Commission of Local Administration (CNAL), which she chaired with the Minister of Territorial Policy and Public Function, Carolina Darias. Montero said that the municipalities will receive the settlement of the lost month of VAT in 2017 through a discount on their final accounts, a formula similar to that agreed with the communities.
However, he did not want to confirm whether the figure on the 2017 VAT settlement for local corporations given by the spokesman of the FEMP (Spanish Federation of Municipalities and Provinces) of the PP, Jorge Azcón, of about 750 million euros, is the definitive, because it affirms that “those accounts have not yet been closed”.