All posts by Luis Moreno

Moreno Luis - is a business and economics reporter based in Barcelona. Prior to joining the BNE24 he was economics editor of the BBC Spaine and worked as an economics and political reporter for Murcia Tuday.

Violence in Colombia does not let up in 2023: 94 massacres and 188 leaders murdered

Violence has not let up this year in Colombia where the rates of murders of human rights defenders, signatories of the peace agreement, forced displacements or massacres have remained high, despite the fact that in some cases there have been slight decreases.

This is stated by the NGO Institute of Development and Peace Studies (Indepaz) in the document “Violence in Colombia report 2023”, published this Friday, in which it concludes that this panorama makes it necessary to take “measures to confront the complex situation of leaders, social leaders and human rights defenders”.

Between January 1 and December 28 of this year, 188 people who were developing some type of leadership or defense of human rights in Colombia were murdered, according to the report. “Regarding 2022 and until the date of issuance of this report, one more leader has been murdered than the previous year (…) On average, 15 leaders or human rights defenders were murdered per month.”

Murders of peace signers

The report also details that this year 44 signatories of the Government's peace agreement with the former FARC guerrilla were murdered, six less than in 2022 when there were 50 murders. “During 2023 the average number of murders of signatories of the agreement per month was three, while in 2022 it was four,” Indepaz added.

This year, 94 massacres were perpetrated, the same number as in 2022. However, the victims of these crimes were 343 last year, while this year there were 335.

“In the case of massacres, compared to the year 2022, the average number of massacres committed per month remains at eight, with January and November 2023 being the months with the highest number of cases with twelve and eleven respectively,” the report noted.

Regarding the victims of antipersonnel mines, this year 55 people, six of them minors, were affected by the explosion of these devices, mostly in the department of Nariño, bordering Ecuador.

Federico Sturzenegger, the advisor who designs Javier Milei's economic "shock"

His name appeared in all the pools prior to the formation of the Government of President Javier Milei in Argentina and, although he did not finally obtain a seat in his ministerial cabinet, the economist Federico Sturzenegger is one of the libertarian's main advisors and plays a fundamental role in the design of their economic “shock” plans.

Born in the Santa Fe town of Rufino in 1966, Sturzenegger studied Economics at the National University of La Plata and continued specializing until the mid-nineties when he became chief economist of the Argentine oil company YPF.

His entry into politics did not take long.. Sturzenegger held the position of Secretary of Economic Policy in March 2001, during the Government of the radical Fernando de la Rúa (1999-2001), so Sturzenegger was hit hard by the economic, political and social crisis of December 2001. middle of the storm.

During his Secretariat, the Government of De la Rúa and his controversial Minister of Economy, Domingo Cavallo, presented the “mega-swap”, an operation to exchange public securities that was presented as a great financial achievement, but which led to lawsuits against its promoters. , among them, Sturzenegger himself, who was finally dismissed in this case.

He left politics and ended up returning

With the cascade of resignations in 2001 and radicalism fading, Sturzenegger left the front line and returned to the academic world.. He was recognized at the World Economic Forum in Davos, received a Konex Prize in the Humanities category and was a visiting professor of public policy at foreign universities.

At the same time, he combined his academic work with the publication of articles in the press. In 2008, the then mayor of Buenos Aires, Mauricio Macri, recovered Sturzenegger and appointed him president of Banco Ciudad.

The relationship between the economist and Macri became increasingly closer, and Sturzenegger completely integrated into Macri's party, becoming a member of the Republican Proposal (Pro) party, for which he was a national deputy between 2013 and 2015.

President of the Bank of Argentina

With Macri's victory in the 2015 presidential elections and his arrival at the Casa Rosada, the economist was named president of the Central Bank of the Argentine Republic.

Sturzenegger led the monetary entity for three years, until 2018 and during this time he eliminated the exchange rate on the US dollar, promoted the creation of mortgage loans for the housing market and the expansion of instruments such as Central Bank bills (Lebac). and the liquidity letters (Leliq), which have been widely criticized by Milei.

His management at the helm of the Central Bank ended in 2018, when high levels of inflation caused a change in the direction of the entity, in which Macri placed Luis Caputo, who is currently in charge of the Ministry of Economy in the Milei government. .

Both came to be investigated in the judicial investigations that began in 2021 in Argentina for the financial rescue signed between Macri and the International Monetary Fund (IMF) worth $57 billion.

Behind Milei's reforms

If Caputo is in charge of the macroeconomic part in Milei's Executive, Sturzenegger is the soul of the structural reforms that the Argentine president proposes for the economy, social and political life of Argentina.

All of them are synthesized in two batteries of measures designed by Sturzenegger: the decree of necessity and urgency (DNU) and the macro-project of public emergency law that gives “superpowers” to the president.

In the presentation of the first on a national radio and television network, Milei appeared accompanied by his entire team at the Casa Rosada. Of all those present at that appearance, only Federico Sturzenegger was not a public official.

His role as “architect” is also possible thanks to his closeness to the president, whom he advises on all types of issues.. Thus, in recent weeks, the economist has been one of those in charge of defending the controversial packages of measures, which have been received with protests and “bangs” in the streets of Buenos Aires and other cities.

Sturzenegger was “shocked” by the “quick response” of the protesters to the DNU and the so-called Omnibus Law. The truth is that both texts are surprising for their length, more than 400 pages in both cases.

For now, Milei, Sturzeneger and the rest of the members of the Executive have warned Argentines that the DNU and the Omnibus Law are only the first steps in a profound reform of the foundations of the South American country.

Sánchez begins to withdraw aid with the increase in VAT on electricity and 'forgets' about free transportation for the unemployed and minors

Yesterday the Government approved the ninth package of measures to alleviate the economic effects of the war in Ukraine, an economic response that until now – and without taking into account the new decree – totals more than 47,000 million euros. That is why, once inflation was controlled, the Executive has begun to withdraw aid, since it is also something requested by the European Union. In this case, electricity will become more expensive because the VAT on electricity and gas will begin to rise from the current super-reduced rate and will end the year, in the case of gas, at 21%.. Furthermore, a commitment that President Pedro Sánchez launched in his investiture speech regarding free public transport for minors and the unemployed has not finally been included and which would entail a large public expense, since it has been decided to maintain free public transport for travelers. usual and to continue offering discounts of up to 50% on regional and municipal transportation.

The socialist wing of the Executive, led by the Minister of Finance and deputy secretary of the PSOE, María Jesús Montero, was in favor of spending less money. Or at least that's how he had let it slip in his last public interventions. “The European Union has been advising to withdraw stimulus measures,” he noted less than two weeks ago. However, Sumar, the other leg of the coalition, opted to, if withdrawing some aid, do so gradually to avoid economic shocks.. They even claimed that a sharp cut could cause a drop in growth of between one point and one and a half points of GDP, that is, approximately 10,000 or 15,000 million euros.

Finally, the theses of the second vice president Yolanda Díaz have been imposed and the decree states that, as of January 1, the VAT on electricity will go from 5% to the reduced rate of 10%, at which it will remain throughout 2024. In the case of VAT on gas, it will go from the current 5 to 10% between January and March and from April it will return to the 21% rate it had before the energy crisis.. Sánchez defined it as a “gradual increase” in tax rates that, in the case of gas VAT, “will recover normal values” once “the winter stage” is over.

In the case of VAT for basic foods – bread, flour, milk, cheese, eggs, fruits, vegetables, legumes, potatoes and cereals – it will remain at 0% until June and, for pasta and oils, at 5%. There is no news regarding the PP's proposal to also reduce the VAT on meat, fish and preserved foods to 5%, despite the fact that 'popular' sources assure that Sánchez assured Alberto Núñez Feijóo, president of the PP, last week I would study it.

In the case of transport, the Government has chosen to maintain generalized aid instead of selected by income or employment status.. Thus, the state discount for transport passes that must be combined with another regional pass is extended throughout the year so that the reduction is at least 50% of its amount, as well as the discount for Avant trains and the free Cercanías, Rodalíes and Media Distancia trains for “frequent users”.

However, the announcement made by the president in his inauguration speech, a little less than a month and a half ago, in which he promised that transportation would be free for minors and unemployed people, has been left out.. Sources from the Ministry of Transport defend that the Government “has been more ambitious and has made a greater effort”, because public transport under state jurisdiction “is not only free for the unemployed and for young people, but for everyone, without limiting it to groups “. Furthermore, they maintain that subsidies for regional and municipal transport will be maintained if the competent authorities complete the 30% discount provided by the Executive up to 50%.

However, the president wanted to highlight the importance of the “fiscal consolidation” that the Government is carrying out.. He pointed out that the public deficit will be 3% of GDP next year – when in 2021, he assured, it was 10% – and the debt will be reduced to 106% of GDP. “For a progressive government, fiscal consolidation is even more important than for others because we believe in a strong welfare state to finance everyone's services,” he launched.

Guyana assures that it does not plan to take "offensive actions" against Venezuela

The vice president of Guyana, Bharrat Jagdeo, assured this Thursday that his country has “no plan to take offensive actions” against Venezuela, which has described the arrival of a British warship on the Guyanese coast as a “threat.”

“This is not about waging wars, but about better monitoring our exclusive economic zone and (safeguarding) our territorial integrity and sovereignty,” the Guyanese vice president said at a press conference.

This is how Jagdeo responded to the decision of the Venezuelan president, Nicolás Maduro, to order this Thursday “a joint action of a defensive nature in response to the provocation and threat of the United Kingdom against the peace and sovereignty” of Venezuela.

Last Sunday, the United Kingdom announced the sending of the ship HMS Trent to Guyana, a former British colony, as a “show of military and diplomatic support” to the country in its dispute with neighboring Venezuela over the management of the Essequibo.

In this regard, Jagdeo noted that this visit is “routine” and something “planned for a long time that is part of the construction of Guyana's defensive capacity.”.

For this reason, Guyana is not going to reject the ship, as requested by Venezuela.

The vice president also stressed that Guyana is committed to the Argyle Declaration, in which Caracas and Georgetown agreed not to threaten each other and to avoid incidents that would trigger tension over the Essequibo border dispute.

“Nothing we do or have done threatens Venezuela,” Jagdeo emphasized.

However, the Government of Venezuela condemned the arrival of the British warship in Guyana as a “hostile provocation” and a “direct threat to peace.”

For his part, Maduro insisted that it is a “rupture” of the agreements he signed with his Guyanese counterpart, Irfaan Ali, on December 14 in Saint Vincent and the Grenadines, the so-called Argyle Declaration.

Yesterday, the Prime Minister of Saint Vincent and the Grenadines, Ralph Gonsalves, said that he feels “very optimistic” that the dialogue between Venezuela and Guyana will continue in “good spirit”, despite the arrival of the British warship.

“What I hope is that fewer events occur that could lead to an interpretation of provocation or threat,” said Gonsalves, who acts as interlocutor between Caracas and Georgetown.

He also defended that HMS Trent “is not a stranger in the region”, since in the past it has helped in anti-drug operations, human trafficking and search and rescue, and has “a very limited military capacity.”.

The dispute over Essequibo escalated after Venezuela approved on December 3 in a unilateral referendum to annex this region of almost 160,000 square kilometers, which Guyana has controlled since 1966 and whose controversy is in the hands of the International Court of Justice.

Israel accepts the "failure" of its mission to rescue three hostages it killed: "The attacks could have been avoided"

The Israeli Army has accepted its “failure” in its mission to rescue the three hostages that Israeli troops killed by mistake in Gaza on December 15, after publishing this Thursday an investigation with more details of the incident.

“The Israeli forces failed in their mission to rescue the hostages,” and “the entire chain of command feels responsible,” said the Chief of Staff, Herzi Halevi, in the conclusions of the investigations carried out by the Army that have been published. released this Thursday.

According to Halevi, “the attacks on the captives could have been avoided,” since “in a situation where there is no immediate threat and no clear enemy is identified, a moment of examination is necessary before shooting.” “This is necessary to avoid, among other things, incidents in which our forces fire on our forces,” he added.

As he acknowledged, in the case of the three dead hostages, they “did not move threateningly and were holding a white flag,” so it would have been “correct to confirm the identification before shooting,” but “the pressure conditions and the operational environment made it difficult for soldiers to implement these measures. However, the Israeli Army is not expected to take disciplinary action against the soldiers who killed the three captives.

“They didn't hear the order”

According to the military investigation, one of the hostages, Yotam Haim, was shot a quarter of an hour after soldiers operating in the Shijayia neighborhood of Gaza City had already shot the two other hostages, Samer Talalka and Alon Shamriz. According to the investigations themselves, Haim fled after the shots were fired at the two other captives, and “approximately 15 minutes later, the battalion commander heard cries in Hebrew for 'help.'”

After that, “he gave orders to suspend fire, shouting in Hebrew 'come to us,'” after which the hostage “emerged from a building toward the Israeli forces,” but “two soldiers, who did not hear the order” to cease the fire “due to the noise of a nearby tank, they shot and killed him.”

According to the investigation, before they were killed by mistake, the hostages “were walking shirtless, and one of them was waving a white flag, standing at a point of limited visibility with respect to the position of the soldier who shot.”

Kim Jong-un calls to intensify war preparations in the face of "unprecedented" tension on the Korean Peninsula

The leader of North Korea, Kim Jong-un, called this Thursday to continue strengthening his country's nuclear capacity and intensify preparations for war in the face of “unprecedented” tension on the Korean peninsula.

During the second day held on Wednesday of a notable plenary session that the single North Korean party is holding these days towards the end of the year, Kim explained the tasks to be carried out by the army and the sectors of the ammunition, nuclear weapons and civil defense industries. , who were instructed to “further accelerate war preparations,” the state news agency KCNA reported today.

Kim made this call “based on an in-depth analysis of the serious political and military situation on the Korean Peninsula, which has reached an extreme point unprecedented in history due to the confrontational movements of the United States and its vassal forces.” , according to details published this Thursday by said medium.

The North Korean marshal also defended his country's right to expand and develop strategic cooperation “with anti-imperialist countries”, in an apparent veiled reference to the criticism received for its recent rapprochement with Beijing and Moscow, and to participate in the “anti-imperialist struggle” international scale.

The Workers' Party inaugurated this plenary session on Tuesday, which is still unknown when it will end, to review the implementation of the policies proposed this year and establish the strategy for 2024, “a decisive year” for the fulfillment of the regime's current five-year plan. said Kim, in which he advocated at the time to strengthen his weapons development.

The North Korean leader spoke of the need to further consolidate the organizational and ideological foundations of the party and to adapt to the developing situation, as well as to implement its strategy “through a more courageous and determined struggle despite the growing challenges and difficulties”.

In addition to these issues that outline the direction that Pyongyang's foreign policy will take, Kim also spoke in front of party members about “the issues that should be prioritized” to strengthen the country's political, labor or economic system.

Kim called to strengthen “key” industrial sectors such as steel, chemicals, electricity, coal and machinery, and to accelerate rural development and stabilize agricultural production, prioritizing the development of regional industries and fishing, among others. areas.

Weapons to enforce the law, arbitrary detentions and mistreatment: the UN denounces abuses by Israeli soldiers in the West Bank

The Israeli armed forces and illegal settlers have committed serious human rights violations in the West Bank since October 7, which caused at least 300 deaths (79 of them children) and included illegal arrests and mistreatment of detainees, a report denounced this Thursday. of the United Nations.

The document from the UN Human Rights Office demands that Israel “stop the use of military weapons in law enforcement operations in the West Bank, arbitrary detentions and mistreatment of Palestinians, by lifting discriminatory movement restrictions.” .

Of the 300 deaths according to the report, 291 died at the hands of the Israeli Security Forces, and the rest were murdered by settlers, although there is one case in which there are doubts about the authorship.

In that sense, the document reports that the settlers sometimes act accompanied by Israeli security forces or they themselves wear supposed uniforms of that body.

Just this Thursday, two Palestinians died in the occupied West Bank during separate incidents, the first in the morning during an Israeli Army operation and the second after being shot by Israeli forces, according to the Palestinian Ministry of Health.

The report indicates that in the first weeks after the terrorist attacks of October 7, up to six daily incidents involving settlers were recorded, such as shootings, arson of houses and vehicles, and destruction of trees and crops.

“The UN Office documented multiple cases of settlers attacking Palestinians while harvesting their olives, forcing them off their land, stealing their harvest, and poisoning or vandalizing the olive trees,” the report said.

Humiliation and sexual violence

It also denounces that Israeli forces have detained more than 4,700 Palestinians in the West Bank and East Jerusalem, including 40 journalists, and on many occasions subjected them to mistreatment. “Some were forced to strip naked, they were blindfolded and for hours they were restrained with handcuffs and their legs tied, while Israeli soldiers stepped on their heads or backs,” he said.

“They were spat on, pushed against walls, threatened, insulted, humiliated and in some cases were victims of sexual and gender violence,” the report added.

“The abuses documented in this report echo the patterns and nature of others in the past, in the context of Israel's long occupation of the West Bank, but the intensity of the current violence and repression has not been seen in years,” commented the senior UN Commissioner for Human Rights, Volker Türk.

“I call on Israel to take immediate, clear and effective measures to end settler violence against the Palestinian population, to investigate incidents by settlers and Israeli forces, and to ensure the protection of Palestinian communities against any form of of forced displacement,” he added.

The Austrian high commissioner also urged Israel to allow his office access to the country, assuring that he was willing to prepare similar reports on the Hamas terrorist attacks against Israeli civilians on October 7, which were the trigger for the current conflict.

A “ridiculous” report

For his part, Tal Heinrich, spokesman for the Israeli Prime Minister's Office, said Thursday that the report is “quite ridiculous.”. The document, he added, shows facts that the Israeli Government knows, such as that “the Palestinians are arming” teenagers to confront the Israeli Army.

The spokesperson criticized that the document does not take into account the threats faced by Israeli forces in areas of the occupied West Bank such as Judea and Samaria, where they act to “keep that front as calm as possible.”

Heinrich added that the Islamist group Hamas and the Islamic Jihad have strongholds there, which he blamed for the disruption to the daily lives of Palestinians caused by the Israeli Army's controls. Regarding the settlers, he assured that attacks on Palestinians show “a significant decrease in an almost marginal phenomenon.”

He also commented that the Prime Minister of Israel, Benjamin Netanyahu, has reiterated that no one can take justice into their own hands and those who violate the law regardless of their religious or political beliefs will be prosecuted.

The largest union in Argentina calls a general strike for the "extensive reforms" of the Government of Javier Milei

The General Confederation of Labor (CGT), the main trade union center in Argentina, called this Thursday for a general strike for next January 24 in protest against the extensive reforms promoted by the Government of Javier Milei.

As reported by the union in a statement, a mobilization was also called in front of the headquarters of the National Congress, among other protest measures for that day.

Extensive renovations

The strike comes after Milei sent this Wednesday to the National Congress a bill to declare a state of emergency in the economy and in many other areas until the end of 2025.

This project also includes, among other points, a reform of electoral regulations, changes in the Penal Code to control street demonstrations and powers for the Executive to privatize public companies.

Furthermore, on December 21 on a national network to announce the signing of the Decree of Necessity and Urgency (DNU) for a massive reform of laws and the deregulation of numerous economic regimes.

The Argentine media referred to the document as “a megadecree” because its 83 pages contemplate the reform of more than 300 regulations to lay “the foundations for the reconstruction of the Argentine economy and return freedom and autonomy to individuals, taking away the State above”.

Discounts on transportation, VAT on electricity and gas and taxes on banks and energy companies: keys to the anti-crisis decree that is approved today

The Government will approve this Wednesday the new decree to alleviate the economic and social consequences of the war in Ukraine. He will do it on the horn, since the current one expires on December 31. In fact, PSOE and Sumar are still negotiating the package at this time, in which it is expected that the bulk of the measures that have been applied until now will be extended, such as discounts on transport or the prohibition of evictions of vulnerable families without alternative. On the contrary, the withdrawal of some of the proposals that cost the public coffers the most is expected, since Europe has already begun to ask for spending restraint.

As usual, the Executive is keeping its cards with the utmost discretion. In all likelihood, it will be President Pedro Sánchez who will present the new decree this Wednesday, after the Council of Ministers has held. It is a situation similar to what occurred last year, when he announced the package of measures at the same time that he made an annual assessment of his Government's actions.. Then, the head of the Executive and the leader of Sumar, Yolanda Díaz, closed the last threads with a meeting in Moncloa -with a photo included-, since it was not until these last few days that the negotiations have intensified. In this sense, throughout this Tuesday, the vice presidencies have been exchanging documents and proposals.

Unlike 2023, Podemos is no longer part of the Council of Ministers and it is the first large-scale decree of the new PSOE and Sumar Government since the investiture was held in mid-November.. In the speech that the president gave then, Sánchez anticipated that free public transport for young people and the unemployed would be extended from January 1. In addition, he also pointed out that the VAT reduction would be extended to 4% for basic foodstuffs and the reduction from 10% to 5% for oil and pasta.

According to what Sumar sources have told Europa Press, those from Díaz have managed to extend the rule that states that companies that fire workers alleging causes such as the rise in energy costs will be obliged to return the aid they have received from the State.. This idea was included in the proposals that Sumar made public last Monday, as an exercise of pressure on the socialists and in which, basically, they asked to maintain the vast majority of the aid that expires on December 31. The main of the new measures that Sumar claimed to include in the decree was the automatic extension of all rental contracts that expire in the next six months, a rule that was in force until last June and that the PSOE said was “above table”.

It is the same answer that was given weeks ago when asked about another of the measures included in the package and that, finally, will be included: the one that prohibits the evictions of vulnerable families without a housing alternative.. This point is included in the housing law approved in the last legislature, although the mechanisms still need to be developed to, as stated in the articles, “provide response and support, in coordination with social services and third sector entities, to people and families with fewer resources, avoiding evictions in vulnerable situations”. That is why the Government has agreed to include it and has left its 'sale' to EH Bildu, which has claimed victory.

The package that will be approved this Wednesday will be the eighth since the conflict began in Ukraine and the cost to the public coffers already amounts to 47 billion euros. Furthermore, Europe has already begun to call for spending restraint, so some measures will either be cut or eliminated. In fact, the Treasury has already been preparing the ground for the withdrawal of some. “The EU has been advising to withdraw stimulus measures,” recalled the fourth vice president, María Jesús Montero, at the end of last week. On the wire are the reductions in the special tax on electricity and VAT. However, the intention of the PSOE is to “squeeze the fiscal margin to the last euro.”

Free and discounted transportation

Regarding measures related to transportation, public or private, it is expected that this Wednesday's decree confirms the announcements that Sánchez already made during his inauguration session that as of January 1, public transportation will be free for those over 65 years and unemployed. However, communities like Madrid are still waiting for some concrete conclusion regarding the reduction in the price of transport passes for the rest of the population, to which the Government contributes 30% and regional governments such as Madrid, with another 30%. Also up in the air is the availability of free passes for medium-distance trains.

In private transport, nine months after the entry into force of the discount of 20 cents per liter of gasoline or diesel for all drivers, there is only a reduction of 5 cents per liter from which only professional transporters and the agricultural sector. Extending this aid, already very residual, is another of the decisions that have to be made this Wednesday, in a context in which fuel prices are below what they were before the war in Ukraine began.

Measures on the price of electricity

In the field of energy, one of the big unknowns is whether the Government will extend the cap of 67 euros/Mwh that has existed since 2021 for electricity contracts and that in 2022, in the midst of the energy crisis, it extended to consumers with fixed contracts. a rule by which electricity companies that sign new supply contracts to consumers or renew them will not be able to set a price that exceeds 67 euros. The difference with the real cost is assumed by the electricity companies, reducing their profits.

This reduction of 67 euros was a way to limit the excessive profits of the electricity companies and, like the Iberian mechanism, it will also decline on December 31 if there is no decision by the Government to extend it. Although against this limit and pointing out that it is the strictest of those applied in other EU countries, the sector is considering that perhaps the Government will decide to maintain it next year.. Something that will not happen with the other limit on the price of electricity, the one set by the Iberian mechanism that will not extend beyond the end of the year after Brussels rejected such a possibility.

With regard to the super-reduced VAT on gas and electricity, everything indicates that the Government will opt for an intermediate solution between maintaining the super-reduced rate of 5% or returning it to the 21% before the energy crisis.. The first possibility has been losing steam with the stabilization of electricity prices and the other would mean a sudden increase in the electricity bill that is difficult to assume when inflation is still much higher than usual, so it appears to be possible. the option to raise it progressively.

It also remains to be seen what decision the Government makes regarding other tax cuts to alleviate the cost of energy for homes: the reduction of VAT to 5% also for pellets and wood, the reduction to the minimum allowed of the Special Tax on Electricity, which is currently taxed at 0.5%, as well as the suspension of the tax on the value of the production of electrical energy. All of these measures will also expire on December 31 if the Government does not decide otherwise in this Wednesday's decree.

Something that does not exactly end with the end of the year but on which there could also be modifications are the new taxes on banks and energy companies that were created last year, also to limit excessive profits due to energy prices and rise in interest rates. The EU agreed to a general framework for what it called a “solidarity contribution” – at least 33% of the profits of these companies – but left room for each government to adopt equivalent measures.. This is what eight countries did, including Spain, which according to a report from the European Commission is the country with the most particularities in the application of a new rate that in principle was only for energy companies. On the one hand, the Government decided to also extend it to banking. Furthermore, the Spanish tax is the only one that taxes -at 1.2%- the net turnover of companies.. Only like Belgium, Portugal and Hungary, it chose to apply it in the 2022 and 2023 fiscal years.

In this way, next year the tax accrued in 2023 will still be collected but the decision remains whether to maintain it, reduce it or modify it in 2024, on which it will depend whether income is collected for this concept in 2025.. A few weeks ago, at COP28, the third vice president, Teresa Ribera, opened up to reviewing it, taking into account that the drop in energy prices has also evaporated the “extraordinary profits” of companies in this sector. The possibility of linking it to investment in renewable energies to promote the energy transition was even suggested.

Goodbye to Calviño, the Spanish minister who knew how to unite economic rigor with feminism and social justice

The Economy is probably the most technical portfolio of the entire Council of Ministers. You only have to look at the resumes of their predecessors in the control panel from which Spain's economic policy is directed.. Economists, senior officials and bankers have taken turns in a ministry that, due to its fixation on numbers, was often viewed with antipathy from society and other ministries.

The arrival of Nadia Calviño to the Government in 2018 fully fit that profile: she was the technocrat arriving from Brussels who had to guarantee the maximum possible economic rigor in Spain's accounts.. Five years later, Calviño – elected by the EU countries to preside over the European Investment Bank (EIB) since January 1 – says goodbye to the Government with a much broader profile: she has delivered economically, but she has completed that line of fiscal rigor with a social and feminist one, something that few expected.

The pandemic was their first litmus test: they had to choose between facing the economic crisis with adjustments or with social shields. Calviño was one of the European ministers who opted at that critical moment for the response to be an injection of aid that had never been deployed before in the European Union.. ERTE to maintain employment during confinement, ICO guarantees for SMEs and mortgage and rent relief measures were some of the measures implemented in Spain.

The plan that Calviño designed received the name 'Social Shield' from the Government. And, although with adjustments, some of these measures have been maintained until now, whether justified by the waves of covid or by the effects that the war in Ukraine has had on inflation and, in general, on the world economy as a whole. .

The proof of covid came after the two electoral processes that were held in 2019 and in which Calviño remained Minister of Economy. In the last one, she was chosen by Pedro Sánchez to stop the attacks of Pablo Iglesias, former leader of Podemos, in the first coalition government in recent Spanish democratic history.. Already then she received the stripes of vice president, being the third. Then the second. And finally, the first. That rise came by endorsing the mantra of firmly combining fiscal responsibility, social justice and structural reforms.

The vice president leaves the Executive with a social profile, but also with the support of economic data. According to the latest report from the Chamber of Commerce, the country's GDP will have grown by 2.4% this year. In addition, Spain is also one of the eurozone countries that has best controlled inflation.. The latest price increase data marks 3.2%, far from the 9.8% that was registered in March of last year. To a large extent, the good performance of the Spanish economy is related to the social shield deployed after the coronavirus pandemic.

Social measures

Some of the social measures surrounding her management came directly from her department, such as the imposition of a female quota on the boards of directors of large companies, or the commitment to the connectivity of rural areas.. Also the measures to guarantee the financial inclusion of the elderly or the line of guarantees to provide liquidity to companies and the self-employed through ICO credits, which was provided with up to 100,000 million euros.

Others were coordinated with other ministries from the Government's Delegate Commission for Economic Affairs, which Calviño has chaired since he took office.. These included the development of the Minimum Living Income (IMV) for the most disadvantaged, in this case promoted by the Ministry of Inclusion and Social Security of José Luis Escrivá; or the guarantee of the supply of electrical energy, among others. Furthermore, Calviño's European experience was crucial for Spain to obtain 140,000 million euros from the recovery and resilience mechanism.. His contacts in the Commission were also key to agreeing on the plan and closing the committed reforms, which have all passed through his table.

Feminist reference

One of the improvements in public perception of the vice president occurred coinciding with the departure in 2021 of Vice President Carmen Calvo.. Calviño became the feminist reference of the PSOE within Sánchez's cabinet, compared to Irene Montero, who represented the feminism of Unidas Podemos from the Ministry of Equality. Thus, it is worth noting that the central role that his Ministry was assuming, as director of the Government's economic policy, was accompanied by greater confrontation with those responsible for other ministries, mainly with the second vice president, the leader of Sumar Yolanda Díaz.

All in all, the vice president made the flag of feminism her own, and not just in a theoretical way.. For example, he put it into practice when he announced that he would refuse to pose in photos of events in which there were only men.

Another of the images for which Calviño will be remembered is the one that united him with Carlos San Juan, a retired doctor who managed to collect more than 650,000 signatures with the campaign I am older, not an idiot.. The vice president recently managed to prohibit banks from charging commissions for cash withdrawals at the window to those over 65 years of age and people with disabilities.. Regarding banks, Calviño will hold his last Council of Ministers this Wednesday with the approval of a new threshold so that around 100,000 families with incomes of up to 37,800 euros per year can qualify for the approved mortgage relief measures.

In the social balance of his management in front of the Ministry of Economy – which until the formation of the last government also included the Department of Digital Transformation – is the purpose of ending the “digital divide” that exists, above all, in rural areas.. He did it with the launch of the Rural Demand program. Conéctate35, a new high-speed broadband service for 35 euros per month and available throughout the national territory.

BIO
  • Economist, lawyer and member of TECO (the elite body of State economists), the profile of Nadia Calviño (A Coruña, 1968) fit what was expected for the Ministry of Economy when she was appointed in June 2018, in the first government of Pedro Sánchez. In 2021 he would become vice president, which he has held since then.