Puig appeals to political and social unity to fight inflation

The head of Consell recalled this Monday the spirit that permeates the Alcem-nos social agreement signed in 2020 to counter the pandemic. Now he has championed the opportunity to devise a new plan of resistance and recovery that mitigates the effects of rising inflation and the energy crisis caused by the war in Ukraine. He encouraged public representatives and social actors to go hand in hand to achieve this goal, but it doesn’t seem like it will be easy for him. The main opposition party, PP, believes its measures are insufficient. The announcement that the 10% reduction in rates and public prices would be extended until after the election did not change Carlos Mazón’s mind. Everyone is going their own way, at least for now.

The head of Consell attended the closing of the Valencia Alliance against Inflation municipal summit this Monday, where municipal representatives, councils and social representatives came together to take measures to mitigate the effects of rising prices on families. Organized by the Generalitat Valenciana and the Valencian Federation of Municipalities and Provinces (FVMP), it was closed in principle without any special agreement. However, FVMP was assured that the work towards approximation of positions between the two countries would continue. political forces, unions and employers in the coming weeks trying to fulfill a deal that is in the air today. Therefore, nothing seems to indicate that the socialist baron will put a peaceful end to the legislature backed by an agreement with mayors, councils and social agents.

In his speech, Puig announced that Consell’s general assembly would extend the 10% rate cut against inflation until August 2023. In the middle of the parliamentary process to include this new bonus. He also announced that aid will be provided to the regions affected by the storm in the last days.

common response

In an auditorium filled with public officials, the Consell chairman argued that the current complex situation necessitates a common public reaction and action within the mandate of each institution. Precautions as it is already in place, Generalitat says. At this point, it has benefited from initiatives such as lowering fees for students and families, direct assistance to the self-employed, free public transport for those under 30, and discounts for the rest of the citizens. and tax reform will benefit 97% of the population. In this way, he asserted the need to “coordinate joint actions, greater joint responsibility and cooperation”, putting aside partisanship or dysfunction.

He cited as an example the unanimous approval of Consell’s tax reform, which received the green light at the Cortes last week, describing it as a “turning point”, a “positive exception in the Spanish framework”. It was therefore referring to the measure that would apply tax benefits to incomes below 60,000 euros. However, he did not mention that the second leg of the reform, which will increase the tax burden on high incomes and large assets, will continue despite the frontal denial of the right.

Puig highlighted the steps taken by the Government he heads to strengthen municipal autonomy so that municipalities will have more budgets in this way and therefore greater economic opportunities for self-government. In this context, he announced that Generalitat has contributed 331 million euros since 2017 to promote investment in infrastructure and services, stimulate tourism, fight the burning of forests and halt depopulation «for justice, for municipal conviction and for efficiencyThese are funds transferred through the Municipal Cooperation Fund of the Generalitat, which the Alicante Provincial Council completely rejected and continues to appeal in court, as well as funds against Population Reduction and Fire Prevention and Forest Management for Tourist Municipalities. Activated in 2023.

Puig also called for the European Central Bank and the European Commission “maximum sensitivity” in their decisions on interest rates and fiscal rules, because “we cannot give answers like those given during the financial crisis” and the “financial rules that meet the need for public investment” of European institutions.

Alicante and Elche advocate easing administrative burden

Lots of inconsistencies, but also another common point. The mayors of Alicante and Elche, Luis Barcala (PP) and Carlos González (PSOE), were two of the provincial representatives who attended roundtables to discuss the effects of inflation and the response of municipalities. One of the issues they agreed on was that the contracting regulations in public administrations should be changed as they were considered inefficient and cumbersome, which increased the administrative burden and condemned the slowness of tenders.

Barcala requested extraordinary funding so that municipalities could face extra costs in electricity bills and promote social services. In the mayor’s view, the state has funds for this because it will raise another 30,000 million euros due to inflation. He argued that the local government was the first institution affected by the crisis to apply to neighbors and asked them to rely on more resources. The Alicante councilor complained that he had heard many compliments for the Generalitat and the State’s management during the debate and wanted the discussion to focus on the municipalities’ limitations.

For his part, González believed it was paradoxical to demand more funds and at the same time reduce his own income with tax cuts when they were not progressive and selective. He asked the Councils, the Generalitat and the State to pay for an extraordinary fund that gave oxygen to the city councils to deal with the crisis situation; Despite emphasizing that if municipalities have the capacity to increase their budgets, it is due to the increase in the revenue they receive from the state.

good practices

Rubén Alfaro, president of the Valencian Federation of Municipalities and Provinces, considered the result of the summit a “big bank of good practice” that could help the “alliance” between municipalities, the Generalitat, the business fabric and social representatives. The community is in the position of “the pioneer that other regions are looking at”.

Outcomes addressed include inclusion and expansion of assistance to the most vulnerable families and groups most affected, including measures to streamline processes for aid reaching families. In addition, measures in the food sector through public-private partnerships; promoting commercial and cultural ties and completing the measures by municipalities to introduce free public transport. Regarding tax policy, they opted for a freeze, a moratorium, or a tax cut. The importance of rationalizing the use of municipal buildings and administrative, sports and cultural facilities was emphasized in order to save energy and advance self-sufficiency.