18/04/2024
On 11 and 12 April, Cancun hosted the 2nd Meeting of the Heads of the State Fiscal Model for Social Cohesion (MHECS) promoted by the European programme EU4Equity
The European cooperation programme EU4Equity, led by the FIIAPP together with Expertise France, has supported the meeting of finance ministers in Mexico to reduce inequalities in the country.
“State finances can and should be an engine for social cohesion. Not only by seeking to improve fiscal space or expenditure planning, but also by rethinking their role”.
With these words, the Eu4Equity coordinator at the FIIAPP, Felipe Peña, highlighted the objective of the meeting held in Mexico, in which the advances in strengthening revenues, the quality of spending and transparency promoted by the State Finance Model were shared.
25 entities of the country participated in the event to shape fiscal models that promote continuous, inclusive and sustainable development. The Ambassador of the European Union in Mexico, Gautier Mignot, underlined the importance of the meeting, highlighting the shared values between the European Union and Mexico, dedicating a few words to the organising state: “it is good that it was held in Cancun, as Quintana Roo is a state that has a deep social commitment”.
For her part, the governor of Quintana Roo, Mara Lezama, stressed that “since the beginning of this administration, the decision was taken to restore the health of public finances in order to respond to the expectations of the population, improving the well-being of the most vulnerable. However, there is still a long way to go, which will be possible in the coming years, and the State Fiscal Model for Social Cohesion will help to achieve this”.
Spain has been recognised internationally as a benchmark in the implementation of fiscal policies aimed at promoting green taxes and social cohesion. Spain’s experience in promoting taxation as a tool for social cohesion provides a relevant frame of reference for other countries.
Specialists from Spanish public administrations, in this case from the Institute for Fiscal Studies (IEF) and the Spanish Tax Agency (AEAT), mobilised by the EU4Equity-MHECS programme, contribute their knowledge and experience in the implementation of fiscal policies aimed at mobility and sustainability, as well as in the importance of state public finances as a driver of social cohesion to strengthen the tax system and improve the redistribution of resources in Mexico.
The participation of these institutions demonstrates Spain’s commitment to international cooperation and the exchange of knowledge on fiscal policies and public administration.
Mexico, as the second largest economy in Latin America and the second largest country in terms of population, faces major challenges in terms of social cohesion and the fight against inequality. The indicators are accentuated among women, youth, the indigenous population and people with disabilities, to which must be added the North-South and rural-urban differences. This situation leads to a consequent reduction in social levels of trust in institutions and democracy, and underlines more explicitly the need to re-evaluate the relationships established between citizens and the state, the fiscal system and welfare policies.
In this context, the FIIAPP-led programme seeks to contribute to reducing inequalities and increasing social cohesion by promoting fair, inclusive, sustainable and efficient social and labour policies that “leave no one behind”. More specifically, it will address the lack of resources and investment in public spending by supporting increased tax collection, the strengthening of public policies and institutions in finance and the improvement and progressivity of fiscal redistribution.
