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Pablo Iglesias signs the agreement as Pedro Sánchez looks on.
PSOE and left-wing Unidos Podemos agree 2019 budget

PSOE and left-wing Unidos Podemos agree 2019 budget

The PSOE has said that if the budget plan is defeated, it will use it as the basis for a future electoral manifesto

SUR

Monday, 15 October 2018, 14:45

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The ruling PSOE party has struck a deal with left-wing coalition, Unidos Podemos, over 2019 budget proposals for the Spanish government. The agreement was signed on Thursday morning.

The package is only a proposal as it needs to be approved by parliament but includes several social and welfare measures.

The minimum monthly salary will be increased to 900 euros in 2019. Budget for dependency care schemes will increase 40 per cent to 515 million euros and people will be covered for their social security payments again if they are caring for family members.

The PSOE has said that if the budget plan is defeated, it will use it as the basis for a future electoral manifesto.

There will be no extra tax on banks for the moment, as had been expected, but tax will go up two points for earnings over 130,000 euros a year and four points over 300,000 euros.

IVA tax will be reduced on women's hygiene products from 10 per cent to 4 per cent and IVA on vets bills will fall from 21 per cent to 10 per cent.

The government also hopes to create a minimum guaranteed tax of 15 per cent for big companies.

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