Raising taxes is not enough: Brussels requires more adjustments to Spain – RT in Spanish – International News

The European Commission considers insufficient the range of cost-saving measures presented by the Caretaker Government of Spain to curb the fine threat to Spain for breach of the deficit targets. Brussels
particularly stellar questions as presented by the Spanish government consisting tightening corporate tax. Therefore, Brussels calls between this year and next, another adjustment formula equivalent value guarantee, ie 6,000 million, according to the newspaper El Mundo.

The problem with this measure is that not enough structural, because all it involves is an advancement of corporate tax revenue next year, which in any case would have to be returned to the companies later. Therefore, rather than a structural revenue-raising measure it is a temporary measure to gain time. That is the reason why Brussels requires an additional measure to ensure the contribution of those 6000 euros.

The other measures proposed by the government of Mariano Rajoy, which include the closure of budget cash this year from next day 20 and new measures to combat fraud, have themselves had the approval of the commission.

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in this situation, the government could only meet the demands of the European Commission to increase the corporate tax structurally or exercising control adjusted more public spending, ie, applying further cuts.

Already in the letter that Rajoy sent Jean-Claude Juncker, President of the European Commission, that possibility was outlined: “Conscious of the need to exit the excessive deficit procedure as soon as possible, in the second half of the year, once there is a new government, we are ready to take further measures, if needed, to meet the objective. ”

In view of the situation, why Rajoy called without specifying too, “new measures” will likely result in further cuts. The difficulty will be to approve those cuts by via parliamentarian, because if the Popular Party governs will do without an absolute majority, and adjustments in public expenditure are a matter of consensus difficult.

David Romero