Spanish Parties' Policy Positions as Search for Alliance Begins

Spain's Election: Instability to Remain?
  • People's Party offers tax cuts, targets lower unemployment
  • Socialists, Podemos want more time to lower budget deficit

Spain’s inconclusive Sunday election means parties will have to thrash out some form of agreement before a new government can be formed. With talks set to begin, here’s a list of some of their main policy pledges.

The People’s Party aims to:
* Have 20 million Spaniards at work by 2020 from 18 million now
* Cut the top income-tax rate to 43 percent from 45 percent now
* Reduce the lowest rate of tax to 17 percent from about 19 percent
* Extend subsidies for large families
* Cut deficit below 3 percent by 2016

The Socialists want to:
* Overturn the PP’s labor market reform, restore rights for workers
* Enact a constitutional reform to respond to demands of regions such as Catalonia
* More time to slash deficit, cutting it to 1 percent of GDP by 2020

Podemos seeks to:
* Renegotiate deficit reduction so that it’s pegged to growth
* Restructure debt linked to state aid for banking industry
* Increase tax bands for earnings over 60,000 euros
* Levy 55% tax rate for those earning over 300,000 euros
* Introduce a special 25 percent sales-tax rate on “luxury products,” restore wealth tax
* Create state bank from nationalized lenders Bankia, BMN

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