Economic policy

The economic policy of the PP works in Madrid: it receives 57% of foreign investment since 2003

The liberal economic policies and low taxes applied by the PP in Madrid without interruption for more than 25 years have increased the weight of the region in the destination of foreign investment in Spain. Concretely, from 2003 to this year, Madrid concentrates 57% of international investments in the country. In this third quarter of 2021, the region received 73% of the national total: 4,438 million euros out of the 6,058 million received in the country.

This shows that the region is gaining in weight, dynamism and attractiveness for international investors. As the graph shows, the average investment received by the region from 1993 until today is 56%, thanks mainly to the surge shown since 2003. Between 1993 and 2003, the average recorded in Madrid was 52%. .

So far, Madrid’s record weight in the whole of Spain in one year is 84% ​​in 2018 and 79% in 2008, as this chart also shows. In total, since 1993, Spain has received more than 512,000 million euros in foreign investment, while Madrid has more than 310,000 million.

And another data: the annual growth of investments was 3% in the case of the national average, while the Madrid average is almost half a point higher, at 3.4%.

Government threat

In the midst of these very positive figures for the region – the PP has governed without interruption since 1995 – the liberal policies now applied by Isabelle Diaz Ayuso, regional president, are in danger due to the government’s threat to force all the autonomous communities to apply the same tax policy.

The PSOE calls it tax harmonisation, but in reality for Madrid it would mean having to raise taxes for locals and reduce the region’s attractiveness to foreign investors. Especially with regard to inheritance and gift taxes, which in Madrid are practically cancelled.

This has led leaders of other regions, such as Catalonia or Valencia, even the Basque Country, which benefits from a special regime, to accuse Madrid of being a tax haven and of practicing dumping tax.

Just as the regional government has just canceled all regional taxes, making it the only region in Spain that does not have its own taxes, compared to the 17 suffered by Catalans.