The different organizations of businessmen have prepared their electoral requests to transfer them to the political parties and, therefore, to the Government that comes out of the elections on July 23. Among its main demands are the reduction of social contributions and taxes that hinder investment and job creation. They also ask the political class to reduce administrative bureaucracy, greater labor flexibility, a new boost to the distribution of European funds among companies, an education reform and fiscal support for complementary pension savings plans. This is how the answers that several of the most important business organizations in Spain have given to the questions raised by EXPANSIÓN can be deduced.
It is up to CEOE, the largest business organization, which represents all companies, the self-employed and sectors, to put forward several of the most representative requests for the private sector. For example, the reduction of business contributions to Social Security. The employer estimates that these contributions are higher than those paid on average by companies in the EU. The Minister of Social Security, José Luis Escrivá, said on the 4th in EXPANSIÓN that it is now possible to lower unemployment contributions because unemployment has been reduced in recent years. Of course, Escrivá makes this proposal to compensate for the sharp increase in social contributions that he has just made to finance pensions in his recent reform of the protection system.
Antonio Garamendi’s organization also proposes to reduce the marginal rates of income tax; lower the inheritance and gift tax, and eliminate the wealth tax.
According to CEOE, the Spanish Chamber of Commerce considers that “one of the most urgent actions is to reduce the tax burden on companies, to encourage competitiveness and help increase investment, innovation and, ultimately, job creation “A corporate tax reform will be necessary to establish a single and lower rate than the current one, and a more simplified scheme of tax benefits in line with the challenges posed by the ecological transition and digital transformation” , says the institution chaired by José Luis Bonet.
The employers’ association of small and medium-sized companies (Cepyme) belongs to CEOE, but it has specific proposals for this sector for the next Government that, with the self-employed, represents 98% of the Spanish productive fabric. For example, Cepyme asks the next Government to “evaluate” all the legislation that affects these companies to eliminate the obstacles to their growth in taxation or labor regulations. The institution chaired by Gerardo Cuerva refers to the fact that the growth in billing implies an automatic increase in taxes for SMEs. Or, in the labor field, to the fact that companies that reach 50 workers must have a works council.
The Círculo de Empresarios shares this idea of Cepyme and the entire group when it calls for “a courageous labor reform.” A reform that, among other things, cuts the compensation for the worker for being fired. Especially in the unfair rate, which is now an amount equivalent to 33 days of salary per year of work, up to a maximum amount of two years of remuneration.
Especially, for SMEs and the self-employed, ATA, the organization of this sector in the CEOE, asks the next Executive that public tenders increase their amount in relation to the minimum interprofessional salary. The self-employed complain that the Government, which raises their labor costs, with the increase in the SMI, does not affect this increase in the prices of public tenders.
“The transfer of funds between administrations must lead to an effective and agile arrival in the Spanish productive fabric. Especially, to SMEs and the self-employed, in the form of contract awards and aid to companies and individuals. The Perte must be accelerated [ the different sectoral programs of the economy financed with European funds] CEOE also calls for “an energy scenario that allows us to have competitive prices for industry and companies. They must also be affordable for all consumers, always guaranteeing security of supply.”
“The new Government should promote complementary social security, both in the company and in individual savings. In this last field, the data shows that the current tax scheme does not work and that the third pillar of individual savings must continue to be promoted as is the case in all OECD countries It is necessary to review the norm of extraordinary risks so that the Insurance Compensation Consortium is more active in the coverage of natural phenomena, due to climate change Health care agreements must be developed and strengthened health insurance (Muface model)”.
“An axis of urgent action is training. Education must be considered as a matter of State and the stability of the educational system must be guaranteed. Another fundamental aspect is the adaptation of studies to the needs of companies, which have to perform a key role in establishing the appropriate orientation of the different study plans, either proposing specific subjects that meet their needs, or detailing the basic skills and competencies that students should have to carry out their task appropriately” .
“The bureaucratic burdens of the administrations must be reduced. The accumulation of administrative obligations forces small and medium-sized companies to make an effort for which they do not have sufficient resources. For each regulation promulgated by the administrations, one or more regulations on the same matter. It is necessary to make the deadlines for SMEs more flexible and staggered for compliance with the regulations, which would allow them to continue growing. The new Government should fiscally promote mergers and acquisitions of companies” to improve their size.
One of the most relevant, and controversial, proposals of the Businessmen’s Circle is the lowering of the legal retirement age from 67 years, which will be set in 2027, to 68 years. Therefore, the institution chaired by Manuel Pérez-Sala, proposes that those who retire before the age of 68 lose a pension, as is now the case with those who retire early. From there, the Circle proposes incentives for those who retire between 68 and 72 years of age. Now there are pension incentives for those who continue working after retirement age. Pérez-Sala also proposes that the worker can accumulate their contributions in an individual Social Security account.
Pedro Fernández Alén, president of the construction employers’ association (CNC), calls on the next government to increase the participation of private companies in the investment of European recovery funds. Fernández complains that there is an increasing participation of public companies in projects with European funds, such as Tragsa, Ineco or Isdefe. “Without private companies, Spain will not meet the investment deadlines” for these resources, says the president of the CNC. And, in addition, it asks the new Executive for a review of prices in public tenders. “Companies have a lot of trouble assuming the increased costs of long-term projects,” he says.
Josep Sánchez Llibre, president of the Catalan employers’ association Fomento del Trabajo, demands that the next Government eliminate taxes on wealth and large fortunes. Of the 370 proposals that he has sent to the political parties, he highlights that Social Security is responsible for the benefits from the fourth day of sick leave, and not the companies, as indicated by current regulations. On infrastructure, among other measures, he also requests the “essential” expansion of Barcelona Airport. As a whole, the president of Fomento calls for “big transversal agreements in the direction of harmony, sustainable growth and the creation of quality employment.”
Antonio Bonet, president of the Spanish Exporters and Investors Club, acknowledges that the export sector is going through a good moment in terms of gross figures, but warns that Spain has been “losing share in the international market for five years, and this is related to a fiscal policy that penalizes exporters instead of helping them, or that has kept ICEX budgets almost frozen for many years”. For this reason, he calls for making internationalization a state policy and for companies to be given “greater labor flexibility when it comes to adapting to changing market conditions, especially international ones.”
The president of Barcelona Global, Maite Barrera, calls for “prioritizing attractive taxation to attract impactful talent, as well as strategic projects for Spain’s competitiveness.” Among them, she cites “the development, with European funds, of a chip design and prototype plant in Barcelona.” She also asks the next Executive for “an urban agenda” to boost Barcelona’s competitiveness. In this sense, she calls for “reaching consensus to turn Barcelona airport into an intercontinental hub that includes sustainability as a basic requirement, and to improve the efficiency and effectiveness of infrastructure investment”.
The National Federation of Self-Employed (ATA), which is part of CEOE, asks the future Government to extend from two to three years the current ‘flat rate’ of 80 euros of monthly contribution to all those self-employed who earn less than the minimum interprofessional wage annually in its second year of activity. That is, 15,120 euros. The self-employed also ask to make the income from their activity compatible with the entire pension, even if the beneficiary does not have employees, which is now an essential condition. ATA demands a reduction in withholdings from 15% to 10%, and payments on account, from 20% to 15%, temporarily and when inflation exceeds 3%.
With information from: David Casals, Gonzalo Moncloa and Carlos Polanco.
