These are the economic proposals of the PP to face the recession
The PP will focus its economic program for the November 10 elections in a tax drop and in measures to contain public spending, in order to revive the economy at a time when it sees the threat of a new crisis.
"The first thing to do is that we do not drop GDP and employment ", In an interview with EFE, the former Minister of the Environment Elvira Rodríguez, who has returned to the political front as an economic face of Pablo Casado's PP, points out.
Former president of the National Securities Market Commission (CNMV), of the state-owned company Tragsa and former general director of budgetary programming during the Government of José María Aznar, Rodríguez believes that the time has come to reduce the Corporate Tax rate below 20% to encourage the competitiveness of companies and generate employment.
Leaving the maximum rate of personal income tax below 40% – in front of the current 45% – so as not to discourage work and abolish the Property Tax and the Tax on Inheritance and Donations so as not to penalize savings are also part of the tax prescriptions that , in his opinion, "if they are done intelligently they will generate growth and will not harm the collection".
"You have to be careful. It is not that we are now like in 2009 but I would say that we are as with the first indicators that we began to see in 2008, which were ignored, and wanted to fix with fuel measures for the economy such as Plan E or the baby check, "he warns.
In his opinion, those measures were responsible for the fact that in two years the budget surplus would be passed to accumulate a public deficit of 9.5% of GDP.
It affects that measures such as the increase in the minimum interprofessional salary (SMI), which he describes as "short-term", will not solve the crisis and warns that the public deficit could once again break out.
"If no decisions are made we are going to have much bigger problems, because this is like a great ocean liner, (…) changing course is very complicated, "he says.
For Rodriguez, economic policy should not go on the side of subsidies, "which do not generate growth", but for structural changes that encourage activity and increase revenue.
"It is better to take the controls of the tax system, to the tax system to take you," he says during this meeting in which reiterates that if a crisis comes, the collection will fall, the unemployment will rise and the spending on unemployment benefits will increase, which will accentuate "the hole" and only "immediate obligations" can be met.
That is why he believes that the expense must be anticipated and contained.
Faced with proposals such as updating pensions with the CPI or raising the SMI, it is cautious, since, although it recognizes that there is a problem of low wages in the labor market, believes that "when supply and demand work, wages will rise."
"I understand the claim of the pensioners so that their pensions evolve like the CPI, but here we have much more serious problems (…) it is urgent to work with the pension system because in a relatively short time, when the baby boomers retire '(born in the 1960s-70s), the level of pensions will rise, "he argues, referring to the financing of the system.
The former minister makes it clear that the first thing she will do if she governs the PP is to present general budgets that comply with the tax restrictions imposed by Brussels, while trusting the socialist government to leave the accounts clear and "transparent."
Regarding housing, he points out that will have to "unlock public land endowments" to increase the supply of housing and lower the purchase and rental price, while believing that the central administration can give certain "indications" to the Autonomous Communities in the face of a widespread problem such as the regulation of tourist rental In the big cities.