Salvador Navarro, the head of the Valencian Community Business Confederation (CEV), says that several measures aimed at mitigating the effects of wars and inflation in Ukraine and the Middle East have remained in place since early on. He warns that the social shield may dampen household income. Navarro also notes that the withdrawal of tax relief on electricity and gas could pose challenges for the production sector, describing the potential impact as worrisome.
Navarro adds that business leaders disagree on extending taxes that hit energy companies and banks. He argues that these taxes are not reasonable and should not be continued, a point he stresses as a headline concern for the business community (Source: CEV).
Ana García Alcolea, secretary general of CC OO-PV, acknowledges that several measures, including those affecting public transport, are appropriate because they help cut pollution from private vehicles and reduce travel-related accidents. She also welcomes the decision to prevent evictions of vulnerable households and the 3.8% increase in pension revaluations, framing these steps as protecting social welfare during difficult times (Source: CC OO-PV).
However, García questions the effectiveness of reducing indirect taxes on essential foods, arguing that such cuts affect all citizens regardless of their means. She notes that VAT reductions sometimes lead to higher food prices as some companies attempt to preserve profit margins. She also regrets that the government did not heed trade union proposals in a timely manner when approving aid aimed at the most vulnerable during the inflation crisis (Source: CC OO-PV).
Relax some measures
Ismael Sáez, general secretary of UGT-PV, explains that there is an intention to keep certain measures such as transportation discounts and food VAT reductions while introducing changes to other policies, including higher taxes on some utilities. He views the extension of the 2024 aid agreement, limited to manufacturing and physically demanding work, as particularly significant in addressing the needs of a specific workforce segment (Source: UGT-PV).
The conversation among these leaders reflects a broader debate about balancing relief with fiscal responsibility. Proponents argue that targeted support must continue to shield households from inflation while ensuring the competitiveness of regional industry. Critics contend that blanket relief and tax cuts can distort prices, erode government revenue, and fail to reach the most vulnerable without precise targeting. The discussion also highlights the tension between macroeconomic stabilization and social protection, a dynamic that policymakers in the region are watching closely as they shape the next steps in public policy (Source: consensus reports).