17 oct 2018
Board of Directors

CEOE’S BOARD OF DIRECTORS EXPRESSES CONCERN ABOUT THE BUDGETARY PLAN FOR 2019 AGREED UPON BETWEEN THE GOVERNMENT AND UNIDOS-PODEMOS

CEOE’s Board of Directors has addressed in detail the Budgetary Plan agreed upon between the Government and Podemos, which was approved by the Council of Ministers last Monday 15th and sent to the European Commission.

Executive Committee and the Board

 

  • We feel the need to express our concern about a budget that promotes an expansive policy in current expenditures, since it poses an obstacle for the sustainability of the public accounts at a time with high levels of indebtedness and within a context of clear economic slowdown.

  • There is no indication of an initiative to improve the management of expenditures and, in fact, it is compensated through the collection of new taxes. In this regards, an increase in revenues of €5.678 billion is projected, mainly through corporate taxes.

  • Revenue forecasts are above likely levels, both in terms of the tax on technology companies, higher taxes on diesel fuel and the effect of the changes in the Corporate Tax, as well as in relation to the impact of the measures to combat fraud.

  • The proposal to raise the minimum wage to €900 will have negative effects on collective bargaining, whose trend in terms of wage increases was set forth in the recommendations included in the Fourth Agreement for Employment and Collective Bargaining (AENC), in addition to putting into question the framework for negotiation and social dialogue between unions and employers.