The employers demand that the next government respect employers, suppress taxes and respect the salary agreement

The businessmen already have their list of requests for the Government that is elected from the polls on July 23. The president of the CEOE employers' association, Antonio Garamendi, has demanded “respect” from employers, lowering the tax burden, suppressing and reforming taxes and has defended the salary agreement reached with the unions last May.

This is how the leader of the country's main business association expressed himself at the General Assembly held this Wednesday. A conclave in which the businessmen have voted in favor of eliminating the limitation to two terms for the president of CEOE that will allow Garamendi to run for a third presidency if he stands for the next elections scheduled for four years from now.

In a packed auditorium and covered by the main representatives of the country's business organizations, Garamendi has made a passionate defense of the freedom of business and the role of businessmen as drivers of growth in a difficult situation. “During the pandemic it became clear that companies have been and are the main generators of activity, prosperity, employment,” claimed the business leader.

The president of CEOE has denounced a “campaign of harassment and demolition against companies and businessmen with names and surnames” which, he added, “sometimes remind countries of other continents or non-democratic governments”. A veiled reference to the current Executive in which, from its two coalition partners, they have been critical of banking, energy companies or the departure of Ferrovial from Spain. Garamendi has demanded “respect” for the “thousands of men and women who risk their resources and put their savings at stake to turn them into more activity and employment.”

The business leader has emphasized that there is a “favorable regulatory framework that allows investment and does not hinder economic activity”. In this sense, he has demanded that unnecessary administrative barriers be reduced and has called for a “sustainable and responsible” budgetary policy.

In fiscal matters, Garamendi has called for more efficiency in public spending and “no more tax pressure”. “Loading the weight of an unbalanced budget on the backs of companies by way of more taxes or contributions will only lead to less economic growth, employment and more fiscal deficits,” he pointed out.

The employers' proposals in this section go through not creating new taxes, particularly “à la carte” taxes such as those that have been applied to banking, energy and large fortunes during the legislature. The president of CEOE has asked to reform the corporate tax, personal income tax and improve the system of tax incentives for investment. In addition, they ask to abolish the Inheritance and Heritage tax. Measures, all of them, that go along a similar line to that proposed by the Popular Party in its economic program for the elections.

In addition, Garamendi has asked the Government to leave the polls to reduce the contributions that companies pay to Social Security, a contribution that the president of the employer considers “well above the European average”. In this section, the party (or parties) that takes over from the Executive will have a difficult time. The pension reform —negotiated and agreed with the European Commission— includes a significant increase in social security contributions and contemplates additional increases if pension spending deviates from forecasts.

“Loyalty” to social dialogue

Garamendi dedicated the final part of his speech to praise social dialogue. The business leader has puffed up his chest over the wage agreement signed with the unions which, he has said, provides “fundamental social peace”. He has also defended the role of collective bargaining, above the role of the legislator, and has called for “loyalty” in social dialogue.

“In the last year, we have found more than a dozen regulatory changes introduced at night and treachery, taking advantage of the approval of various laws, without prior notice and behind the back of social dialogue. We will claim that everything that we have not discussed must be changed,” Garamendi said.

It should be remembered that the issues that have not been unanimously agreed upon in the social dialogue in the legislature include issues such as the latest increase in the minimum wage, the second leg of the pension reform, or the Scholarship Statute, which did not come to light.

Finally, Garamendi has encouraged all citizens to go to the polls next Sunday. Of course, without recommending the vote for any political formation, unlike the unions that have requested suffrage for “progressive” options.

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