Spain’s New Coalition Government Sidesteps Western Sahara Issue in Agreement

Pedro Sanchez and Yolanda Diaz avoided the subject so as not to upset the Moroccan authorities, believes El Confidencial, specifying that this agreement between Sanchez and Diaz aims to deepen the policies deployed by the current coalition government. "The new coalition will toughen corporate tax in order to raise 10 billion euros. It will achieve this by making companies pay an effective rate of 15% on the accounting result. That is to say, on the profit they perceive, and not on the profit they declare to perceive," Diaz announced at the joint press conference with Sanchez after signing the agreement.

The document addresses at length the employment policy that the government intends to implement in the coming years, as well as a tax reform, the approval of a new financing system and a strengthening of public health. The agreement also provides for the reduction of working time to 37.5 hours per week "without reducing wages", a reform dear to Díaz, as well as new measures to "regulate dismissals". The two parties also agreed to raise the targets of the climate change law and "guarantee access to education for all children from the age of two by the end of the legislature".

However, the two leaders did not mention the agreements that must be concluded to allow Sanchez to retain his position at the Moncloa. The PSOE and Sumar have 152 seats (121 for the PSOE and 31 for Sumar), and they need at least twenty more seats to ensure the investiture of the socialist leader with a minimum of 171 seats required. To achieve this goal, they will still have to negotiate with Podemos (5 seats) and try to convince the PP, Vox and Unión del Pueblo Navarro. In its rally dynamic, the PSOE is exploring all possibilities and aims for a large-scale coalition government.