Álvaro Sánchez Cotrina, the secretary general of the PSOE in Extremadura, has called on the regional president to recover taxes from major energy companies and to reassess tax reductions for high earners to prevent the region from breaching fiscal regulations.
This request will be formalised through a partial amendment to the General Budget Law of the Autonomous Community of Extremadura for 2027. Cotrina made this proposal following an analysis of a report from the Independent Authority for Fiscal Responsibility (AIReF) regarding the key lines of the Extremadura budget for 2027, published recently.
Cotrina expressed that the report confirms long-standing concerns raised by the PSOE, stating, “When we first saw the budgets in mid-October, we declared that the accounts of the Junta de Extremadura are a farce and based on excessive debt.” He highlighted that the report warns of potential fiscal rule violations due to budgetary decisions that jeopardise the region's economic stability.
He specifically blamed the tax cuts approved by President Guardiola for large energy companies, which represent a loss of €28 million in 2027 and could exceed €100 million cumulatively. Cotrina also pointed to tax reductions for the wealthy and the highest income tax brackets as contributing factors to the fiscal shortfall. “These budgetary concessions are leading us towards a breach of fiscal rules,” he warned, describing the current budgets as both false and dangerous.
Cotrina cautioned that Extremadura may be heading towards a financial situation reminiscent of 2015, when the government of Guillermo Fernández Vara faced intervention by the Ministry of Finance. This period necessitated difficult measures and significant sacrifices for the people of Extremadura.
He urged the Popular Party (PP) and Vox to take the economic situation in Extremadura seriously and prioritise public resources over tax cuts for the wealthy. “We need to recover taxes from the large energy companies that generate billions in profits,” he insisted.
Furthermore, Cotrina warned that the deterioration of public finances could jeopardise the commitments announced by the regional government, including €10 million earmarked for wildfire prevention ahead of the next summer. He recalled that the PSOE proposed a pact in July to address the wildfire emergency, an initiative that was ridiculed by Guardiola's government but has since been adopted with similar financial provisions and objectives.
In this context, Cotrina invited Guardiola to review the Housing Pact presented by the PSOE of Extremadura, a proposal that was dismissed and mocked by the regional government just three weeks ago, which is now being considered by the Junta. “I hope we can all get back on track and fulfil our responsibilities as we should,” he concluded, emphasising that the economy of Extremadura must take precedence over government announcements and image strategies.
