Six Regional Governments demand extraordinary fiscal measures from the Ministry of Finance to alleviate the effects of the coronavirus
The Treasury Ministers of Murcia, Madrid, Galicia, Andalusia, Castilla y León and Ceuta send a letter to the minister requesting the urgent convocation of the Council for Fiscal and Financial Policy
Among the petitions lodged are the creation of an extraordinary fund, which will speed up the arrival of European funds, the refund of IVA (VAT) from 2017 or the urgent amendment of the rules of budgetary stability
The Regional Governments of Murcia, Madrid, Galicia, Castilla y León, Andalusia and the autonomous city of Ceuta have sent a letter to the Ministry of Finance requesting a series of extraordinary fiscal measures to alleviate the economic effects of the coronavirus. In the letter, sent today, the finance ministers of the six authorities demand the convening of an urgent session of the Fiscal and Financial Policy Council (CPFF) in which these “crucial measures to overcome the coronavirus crisis” are debated.
The Minister of the Presidency and Finance of the Region of Murcia, Javier Celdrán, stressed the importance of convening this body “in view of the urgency and seriousness of this health crisis and its devastating impact on the economy of citizens. It is time for administrations to work together with loyalty to offer quick and effective responses to overcome this pandemic and its consequences. The Regional Governments are the first line in this fight, but it is essential that we have the necessary resources to face it”.
Thus, the first of the requirements refers to the creation of an extraordinary fund, non-reimbursable and additional to the resources coming from the Autonomous Financing System, which provides the communities with the necessary resources both to face the crisis in the field of health as well as economic.
Another point included in the letter is the streamlining of the management of the funds announced by the European authorities through the European Stability Mechanism, the European Union Solidarity Fund or additional financing from the European Investment Bank.
The representatives of the Treasury of the six Regional Governments also consider urgent the modification of the budgetary stability rules, just as the EU has done with the member states, so that the expenses derived from the fight against the coronavirus do not count for the purposes of deficit and debt targets, as well as authorisation for communities to borrow to face these extraordinary expenses.
Among the actions requested are also the adoption of exceptional tax measures such as those being applied by the Regional Governments to extend the processing times and the payment of own and assigned taxes, in addition to expediting the return of income, thus alleviating the economic situation of citizens.
“The postponement of taxes is a measure that the regional government has already put in place so that no inhabitant of the Region has to pay any of the taxes and fees that due to the Regional Authority while this crisis lasts. Our commitment is to do everything in our power in tax and tax matters to help families, companies, the self-employed and municipalities at this very dramatic moment” said Javier Celdrán.
In the letter, the six authorities also request the refund of the amounts corresponding to the IVA (VAT) paid in the month of December 2017, which in the case of the Region of Murcia amounts to 79 million euros that the Ministry of Finance announced that it would not pay. In addition, they ask the (State) Minister María Jesús Montero to return to the authorities the funds earmarked for active employment policies, the allocation of which was recently approved unilaterally by central government.
Lastly, greater coordination of financial, budgetary and tax policies between the state administration and the regional authorities is requested, so that they contribute to accelerating the EU 2030 Agenda and using the European Green Pact as an investment lever for economic growth and job creation.