We can ask to intervene in the food market and cap prices
The ‘purple’ wing of the Government has proposed this Monday to intervene in the food market in order to lower the price of the basic shopping basket and cap their prices until they reach the values prior to the outbreak of the conflict in Ukraine. In addition, they anticipate a possible refusal by their Executive partners and are open to studying direct discounts on the price of food, but developing a tax on large distribution companies to compensate for the deployment of public funds.
Sources from Podemos have explained to Europa Press that they consider it “essential” that the Executive adopt “courageous” measures, as has already been done with energy or public transport, to “remedy the current price escalation” in this sector. .
This approach comes after the Consumer Price Index (CPI) has risen two tenths at the end of 2022 in relation to the previous month, but with a 1.1 point cut in its interannual rate, up to 5.7%, its lowest figure since November 2021, in contrast to the trend in food prices, which shot up to 15.7%.
You want to follow the steps of the limit to masks
In this way, Podemos proposes setting the maximum prices for common products in the basic basket, following the steps that the Executive already took with the masks or the Covid tests during the coronavirus crisis. Specifically, the ceiling for each of these products would be the one set on February 20, 2022 and would be in force, “at least” throughout this year, with a view to stopping the inflationary trend that has been dragging on since the invasion took place. from Russia to Ukraine.
In addition, and with a view to preventing small businesses from suffering situations of “financial stress”, intervention in the market would be accompanied by direct aid to the sectorr, as was also done in the pandemic with the hospitality industry. From Podemos they argue that this route would be the “most effective and fair” to guarantee food at affordable prices for families.
They propose a tax on large fortunes
In the event that the PSOE, its coalition partner, does not support this proposal, and in order to facilitate reaching an agreement as soon as possible, the purple ones are also open to studying a bonus of the products of the basic basket, as was done with fuels until they were equal to the level they were days before the war in Ukraine. And since this second path would imply allocating public resources, Podemos affirms that it should be completed with two other measures. The first would be to establish an extraordinary tax on large distribution chains, similar to the one approved for banks and energy companies.
The purples already demanded this tribute in the weeks prior to the extension of the anti-crisis decree and advocated a rate of 33% on the profit margins of these companies, highlighting that this initiative had already been deployed in Portugal with good results.
Sanctions for companies that raise prices
In turn, the second complementary measure would be to establish economic sanctions for companies that take advantage of said bonus to continue raising their profits. So, We can demand another new initiative to fight inflation in view of the rise in food prices, as they did, for example, when they demanded an aid check for the shopping basket of between 200 and 500 euros for households with an income of no more than 42,000 euros per year.
Notwithstanding, and after negotiation within the Executive, This aid was set at 200 euros aimed at salaried, self-employed or unemployed in 2022, who have a maximum income -27,000 euros per year-, and joint assets -75,000 euros- depending on the coexistence at home. Within the decree on anti-crisis measures and in terms of food, The Government abolished the 4% VAT for six months which is applied to all staple foods, including bread or milk, and lowered oil and pasta from 10% to 5% to deal with the impact of the war in Ukraine and the rise in inflation.
However, and in accordance with this new proposal, the purple ones do not see it enough and in fact the confederal space already opined that it was not a measure that could help, As the second vice president, Yolanda Díaz, recently stated. Already with the beginning of the political course Díaz also outlined his position to seek an agreement with the distribution to limit the prices of basic food products, which would guarantee affordable costs for citizens.
From the purple formation, the measure was described as sensible and the spokesman for Unidas Podemos, Pablo Echenique, said that he supported that idea, although he did not show much confidence that the companies would agree and defended as best via an extraordinary tax on these companies. He also said that pricing has to be compatible with what lSmall farmers and ranchers have their profit margins so that their activity is sustainable.
On the other hand, on Saturday the general secretary of Podemos and Minister of Social Rights, Ione Belarra, launched one of the main proposals of the formation for the new electoral cyclesuch as the deployment of a guaranteed income of between 700 and 1,400 euros per month from the age of 18.