The PP reopens the REB melon in the face of the skepticism of the PSIB

PalmThe People's Party (PP) has kicked off the parliamentary year with a bill to reform the Balearic Islands Special Regime (REB) and include issues such as a tax cut for innovation and aid for the promotion and renovation of social housing. However, the initiative has met with skepticism from the PSIB (Balearic Socialist Party), which has criticized the fact that, while raising this issue, the PP rejects the state's €1.741 billion debt write-off.

The PP's proposal seeks to expand the scope of the current REB, which expires on December 31, 2028. However, if the Balearic Government's initiative is approved, it would be automatically renewed on that date. "What's the point of such an expiration date?" President Marga Prohens asked on Tuesday: "Did [Francina] Armengol and [Pedro] Sánchez think that in 2028 we wouldn't be islands, that in 2028 all needs would be covered?"

The PP proposes modifying Article 12 of the REB to ensure compensation for the maritime transport of waste on the Peninsula or to other islands, which would be included in the general state budget. Furthermore, it proposes including aid for the promotion and rehabilitation of protected or limited-price housing for rental (not tourism) in the investment reserve, as well as incentives for the acquisition, promotion, or construction of properties. The initiative also plans to add a fourth additional provision to include a 45% deduction from corporate tax for research and development and technological innovation activities carried out on the islands.

"May Prohens not suffer, he will not be there in 2028"

PSIB spokesperson Iago Negueruela responded to Prohens by stating, "Don't worry, it won't be here in 2028." Although he requested time to conduct a detailed evaluation of the proposal, he considered it inconsistent for the PP to seek a renewal of the special tax regime while "rejecting" debt forgiveness. "Talking about a future in 2028 isn't serious when you're giving up more than €1.7 billion," he said. "The REB was achieved by Armengol, and Prohens didn't lift a finger," he added. PP spokesperson Sebastià Sagreras responded by emphasizing that "the polls show that the PP's voting intention in the Canary Islands has increased since Prohens became president." Similarly, he asserted his willingness to negotiate with the other groups to try to reach an agreement.

For his part, MÁS por Mallorca spokesperson Lluís Apesteguia has once again called for a special VAT rate for the islands. "The improvements proposed by the PP remain within the minimum limits that the PP and PSOE are comfortable with: we propose that the REB should represent a differentiated tax model for the Balearic Islands; it is important to include the special VAT rate."