The Official State Gazette of 9 February has published Law 1/2022, dated 8 February, modifying the Economic Agreement with the Autonomous Community of the Basque Country.

The amendment takes into account the agreements adopted by the Joint Economic Agreement Committee on 29 July 2021, which approved the new taxes on financial transactions and on certain digital services, as well as the new one-stop shop (OSS) VAT regimes.

The bill was passed in the Senate at the session on 2 February, with 253 members voting in favour out of 261 votes cast (5 against and 3 abstentions). A few days earlier, in December, it had been approved in Congress with 280 votes in favour, 57 against and 4 abstentions.

With the entry into force of the amendment to the agreed text, the local tax authorities will begin to manage the new taxes. Revenues collected by the AEAT (Spanish Tax Agency) since the new taxes came into force and which, in accordance with the agreed connection points, would have been due to the Historical Territories, must be made available to the local tax authorities.

Text of Law 1/2022

The Joint Economic Agreement Committee, CMCE, has today approved the agreement on the three pending taxes, which are the taxes on Financial Transactions, Digital Services, and the new VAT one-stop-shop (OSS) regimes.

Furthermore, the reference rates of deficit and debt for 2022 of the Basque Government and the Provincial Councils of Araba, Bizkaia, and Gipuzkoa have been agreed, and the Arbitration Board of the Economic Agreement has been renewed, which is the body that settles conflicts that may arise between administrations regarding the Economic Agreement’s connection points.

After fifteen years of their methodology being in use (ten of which extensions) the Basque Council on Public Finance approved a new methodology in an extraordinary session held on 15 July, which will apply in principle to the 2022-2026 five-year period. Various media outlets have also reported the news.

• Noticias de Gipuzkoa (21-07-2021): Olano asegura que la “estabilidad vale oro” y se ha logrado un “acuerdo digno para Gipuzkoa”
• Diario Vasco (21-07-2021): La oposición en Gipuzkoa critica el «rodillo» jeltzale en la Ley de Aportaciones
• Naiz  (18-08-2021): EH Bildu propone acuerdos «amplios y sólidos» en torno a la Ley de Aportaciones
• Gara (17-07-2021): Rementeriak ez du «aldaketa sakonik» ikusi Ekarpen Legean
• Correo (17-07-2021): Rementeria dice que «todos ceden y todos ganan» con la nueva Ley de Aportaciones
• Correo (16-07/2021): Las instituciones pacifican el reparto de impuestos tras 10 años de desencuentros
• Gara (16-07-2021): Ley de Aportaciones, fin a diez años de «interinidad»
• Diario de Noticias de Álava (16-07-2021): Las instituciones vascas cierran la nueva Ley de Aportaciones
• Diario Vasco (16-07-2021) Gipuzkoa pone en valor la nueva Ley de Aportaciones, «que es un mecanismo mucho mejor»
• Noticias de Gipuzkoa (16-07-2021): La Ley vasca de Aportaciones refuerza a las administraciones en la salida de la crisis
• Diario Vasco (15-07-2021): «La posibilidad de que un territorio se vea penalizado persiste con la nueva norma»
• Deia (15-07-2021): Bizkaia dice que la Ley de Aportaciones no debe medirse por “quién gana”

Azpiazu regrets the uncertainty regarding the call for the Joint Committee on the Economic Agreement (DEIA 2021, June 9th)

Next 10 May, commemorating the 40th anniversary of the approval of Law 12/1981, of 13 May, which approved the Economic Agreement with the Basque Autonomous Community, and within the current context of the Covid-19 crisis that has put treasuries throughout the world under immense pressure, including the Basque provincial Treasuries, the Ituna Economic Agreement Documentation and Research Centre and the Ad Concordiam Association for the promotion and dissemination of the Economic Agreement are organising the 9th Conference on “Public Finances and the Sustainability of Debt”.

The Conference, which will be opened by the Provincial Councillor for Treasury and Finances, José María Iruarrizaga, will explore in depth the hot topic of public debt and its sustainability in Europe, particularly after the succession of the 2008 crisis and the current coronavirus crisis, focusing on the case of the provincial Treasuries. A panoramic perspective will be offered of the present and future of public debt in our region, while also looking at the European, Spanish and Basque situation. Speakers will include Javier Pérez, from the Directorate-General of Economy and Statistics from the Bank of Spain, Diego Martínez, professor at the Pablo Olavide University, Enrique Lucas, professor at the University of the Basque Country, and Itziar Agirre, Deputy Councillor for the Treasury of the Basque Government. The programme will end with a round table moderated by the professor from the UPV/EHU, Sofía Arana.

Conference agenda