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Spain prosecutors move to prevent PM from testifying in wife’s corruption probe

Spanish prosecutors on Tuesday asked a judge to drop its request that Prime Minister Pedro Sánchez testify in a preliminary corruption probe into his wife's business dealings, saying it is "not useful".

Spain prosecutors move to prevent PM from testifying in wife's corruption probe
Pedro Sánchez with his wife Begoña Gómez in 2016. (Photo by JAVIER SORIANO / AFP)

Sánchez’s wife, Begoña Gómez, is being investigated for alleged influence peddling and corruption following a complaint filed by an anti-graft NGO with links to the far-right called “Manos Limpias” – Spanish for “Clean Hands”.

Judge Juan Carlos Peinado, who is heading the inquiry, is scheduled to hear Sánchez as a “witness” at the Socialist premier’s official residence on July 30th.

But the public prosecutor’s office on Tuesday criticised the “haste” with which the judge summoned Sánchez and demanded that the hearing be called off.

It is said it “not useful” to ask Sánchez to testify, especially since he is not obligated to respond to the judge as Spanish law allows citizens to remain silent when an investigation concerns their spouse.

The prosecutor’s office — which has unsuccessfully requested the investigation be closed — also criticised the judge for carrying out his probe on a “manifestly disproportionate” manner and without a clearly defined purpose.

When the probe was opened in April, Sánchez shocked Spain by saying he was considering resigning over what he denounced as a campaign of political harassment by the right.

He took five days to reflect but ultimately decided to stay on.

Gómez, who has worked in fundraising for years, notably for foundations and NGOs, is alleged to have used her husband’s position as leverage within her professional circles, notably with businessman Juan Carlos Barrabés who was seeking public funding.

Barrabés – who teaches part of a master’s course at Madrid’s Complutense University that is run by Gómez – acknowledged meeting her five or six times at Moncloa, the premier’s official residence, while testifying.

Sánchez was also present at two of those meetings, he said.

Barrabés – who got two letters of recommendation from Gómez before pitching for a public tender worth several million euros – said they only talked about matters of innovation, judicial sources said.

Gómez on Friday invoked her right to remain silent under questioning by a judge.

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MONEY

‘Fewer Lamborghinis’: Spain’s PM aims to tax the super-rich more 

Spanish Prime Minister Pedro Sánchez has announced that his government is planning higher taxes for those "with enough money to live 100 lives", which could mean a higher income tax than the current maximum of 47 percent.

'Fewer Lamborghinis': Spain's PM aims to tax the super-rich more 

Sánchez kicked off the political year on Wednesday September 4th with a press conference in which he announced “new measures aimed at limiting the disproportionate privileges that certain elites in the country have and benefit from.”

“We are going to tax those who already have enough money in the bank to live a hundred lives,” Sánchez told journalists at the Cervantes Institute.

“We will do this, I repeat, not to harm millionaires, but to protect the middle and working classes from a system that continues to be extraordinarily unfair,” the PSOE leader said.

For Sánchez, “regardless of what some people think, Spain will be a better country if it has more electric cars, made in Spain, more public buses and, therefore, more public transport and fewer Lamborghinis.”

According to the Spanish PM, a more progressive tax system will be one of the three main axes that the left-wing coalition government will develop in economic matters in this new political year, with taxes “that will increase more for those who have more.”

The highest income tax (IRPF) bracket is currently 47 percent, for those earning above €300,000 a year. People earning between €60,000 and €299,999 have an income tax rate of 45 percent.

The Socialist-led government also introduced the so-called ‘millionaire’ or ‘solidarity’ tax in 2022, a levy on people worth more than €3 million (it’s not a tax on income but rather on assets and holdings). There is also a wealth tax which varies based on the region and the residency status.

READ ALSO: How wealthy people in Spain are avoiding the millionaire tax

Sánchez has not yet specified how much income is ‘enough to live a hundred lives’, nor if the planned measures will include higher-income earners than aren’t millionaires but have above average salaries. 

In Spain, there are 5 million people who earn above €3,673 gross a month, a figure from the French Observatory of Inequalities (relating to Spain) and cited in Forbes as being the threshold for being classified as ‘rich’ in Spain.

When Spain’s Economy Minister Carlos Cuerpo was asked on Onda Cero radio station to disclose more about what the Spanish premier was planning, he hinted the main focus will be the super-rich. 

For political opponent and far-right Vox leader Santiago Abascal, Sánchez’s aim is “destroying the middle classes” rather than having anything against “Lamborghinis” and the wealthy.

Similarly, the country’s right-wing media has been critical with the PM’s announcement, claiming that he wants to “kick the rich out of Spain” or distract from increasing poverty in the country.

People with incomes above €600,000 a year represent only 0.07 percent of the population in Spain, contributing around 7.57 percent of taxes to public coffers.

On the other hand, the middle classes – those with an income between €30,000 and €60,000 – make up around 21 percent of the population and their taxes add up to 36.8 percent of the total. 

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