That Sánchez is an unscrupulous man is something known to all. Before leaving on vacation, he carried out a deep purge in his government , in which he threw out all suspected of blundering, except the Interior Minister, Fernando Grande-Marlaska, because he could not find a replacement for him.
Back in Madrid, after the hasty interruption of his vacation due to the Talans taking Kabul , he proposed to inaugurate a new stage, in which closeness to the citizen is “above any interest or economic pressure”, as has repeated these days.
Thus, it puts an end to the policy of hot cloths or pacts with businessmen and employers. From now on the only barrier is Europe, a farmhouse full of neoliberal politicians, who would also like to get rid of them with a stroke of the pen, but cannot due to their economic dependence.
Last Wednesday he opened an endless dialogue with the Generalitat of Pere Aragonés, in exchange for his support for the budget ceiling that was approved the day before in Congress, the highest in the history of Spain. Although he denies it, the condition set by Aragonés was that Sánchez personally attend the meeting, to stage before his electorate a one-to-one negotiation between two states and not just between governments. Without Budgets there are no European funds and without them, there is no paradise or economic recovery.
The endless negotiation with Aragonès contrasts with the dialogue with clubs with the electricity companies
The hand extended to Aragonés contrasts with the duel with a clean club against the electric ones , which is reminiscent of the famous painting in which Goya revives the two Spains, the one on the left and the one on the right. The Government accuses the sector of oligopoly, but the one who really has the upper hand is Sánchez, who can sink the income statement with the regulation of the sector. Said and done.
On Monday he took advantage of the interview on TVE 1 with Franganillo, a moderator adept at the ideas of the topoderoso regime, to launch the first notice to sailors. “We are going to detract the extraordinary benefits that energy companies have,” to redirect them to consumers, “bumping” the gas bill and thus reducing the electricity bill, “announced the president, who throughout the official interview was in charge to emphasize that “It is not reasonable that they have such extraordinary benefits. We have to be supportive. “
As the one who warns is not a traitor, the next day, Tuesday, the council of ministers approved a Royal Decree in which it was specified what the Government understands by extraordinary income. The measure had been cooking for weeks between the third vice president, Teresa Ribera, in collusion with the president of Red Eléctrica de España, Beatriz Corredor, who is in charge of applying it.
It will be this semi-public company, which manages the transport and the electrical system, that will return to the consumer a part of the charges now included in the rate to finance renewable, nuclear or hydroelectric plants . It goes without saying that the three large electricity companies (Iberdrola, Endesa and Naturgy),The ones Ribera accused of “earning a lot of money” to sow discredit and public scandal are the pagan women.
The Government will establish a system so that each cent they charge between the minimum established in 20 euros per kilowatt hour and the 200 that almost reached this week is returned to consumers. A full- blown profit forfeiture . The State, which already keeps around a third of what citizens and companies produce; it is as if, in addition, it decided to appropriate the rest because it is an “extraordinary benefit”. From there to the socialism of the masses that Marx or Engels preached there is only one step.
Sánchez assures that it is a “temporary” average. But nobody knows how to explain what will happen if the price of electricity is not corrected from March and experts warn that, even if it does, it will be very difficult for it to return to 20 euros per kilowatt.
In summary, the Government has introduced great “uncertainty” in the income statement of energy companies , which was reflected this week on the stock market. Endesa and Iberdrola , the two most affected, fell by 10 to 15 percent.
The tsunami also affects the renewables sector , which until now it has tried to protect to become a green champion. Above all, to small producers and marketers that reached agreements to supply at adjusted prices, the famous PPAs, which will now enter into losses. As in other cases, defaults will also affect the banks. Ribera’s new gaffe is so evident that this Thursday, two days after the Royal Decree, he had to backtrack to avoid a domino effect in renewables.
Who will pay the bill? Sánchez is not aware, but the market tends to respond like a boomerang when its rules are broken, with very negative consequences. With this outlook, who is going to invest an additional euro in Spain, several investment banks wondered the day after the measures. Green Spain, that kind of earthly paradise that our low country was going to become after the Sanchista aegis, suddenly withers, like a litter in the trunk of memories.
Ribera was delighted when gas prices were down and the light was breaking record after record low. It did not bother to reform the PVPC system that links the regulated tariff to the free will of the market. On the contrary, he took the opportunity to permanently bury the coal and put an expiration date on the nuclear ones, two essential support energies to keep the system going when the wind is not blowing or the sun is cloudy.
Now we depend only on gas, which has multiplied by five in twelve months and what I will haunt you dark, because Algeria threatens to cut the supply by Morocco and winter tends to catapult prices due to the increase in consumption.
From those powders come these muds. But the Ribera-Sánchez tandem seem to have a solution for everything, it is like yellow ointment. The government temporarily hit the price of gas this week by decree law in another sign of contempt for the market economy. And who will be in charge of the account? On this occasion, it will be directly passed on to consumers in the medium or long term. A solution that the governments of Aznar first and Zapatero have already resorted to. later, generating a deficit of almost 25,000 million, which we are still paying.
The old solution of kicking forward to solve a problem. Also, what government will there be in a couple of years? Look at the bill of tens of billions generated by renewables with Zapatero, Rajoy had to put a stop to it, with a brave cut, which put legal security in question.
History repeats itself. The electricity companies prepare resources for billions, but they can only present them before the Supreme Court, as it is a Royal Decree with social emergency measures, which will take several years to be resolved. The invoice will already be paid by another government. The only way out is to turn to Europe, claiming the breakdown of market unity and the humiliating treatment with respect to companies from other countries. But again, the character of social emergency, and the administrative slowness will put any solution in the time warp. Sánchez gets his way again, although the solution is short-term.
Investor confidence deteriorates, the legal security of investments is trampled on at the moment that is most necessary to consolidate the recovery, because the important thing is closeness to the citizen, as highlighted at the beginning of the political course. The rest does not matter. Populism wins again.