Socialist candidate Alfredo Pérez Rubalcaba has found out how to stymie Rajoy´s path to Moncloa: make things difficult for the regional governments led by the Partido Popular by making them adopt unpopular budget cutbacks that could pass from bills to laws in upcoming general elections. But this strategy is too obvious to be effective. And it underscores the current government´s oversights in supervising regional government accounts during the past two terms in office, despite the fact that Brussels and the markets continually asked them to do so.
After big socialist losses in elections held on March 22, which surprised many because the regional governments were mostly comprised of PP members, now the government is doing everything it can to corral the regional governments so that they will give back 23 billion euros to the state. This is what they owe as a result of excess payroll receipts in 2008 and 2009 according to IRPF, VAT and other special taxes.
Why so hasty now and not before the March 22 elections? Because regional government discipline is more urgent now than before? Zapatero´s presidency has had more than seven years to watch over regional government spending, and now is not the best time given that they will have to face 13 regional government advisory committees, counting Ceuta and Melilla. Rubalcaba´s regional government strategy is a desperate measure and the worst part is that his approach sacrifices economic sense for political gain. This is a bad start.
