Spain to see MASSIVE CUTS and A 21% RAISE IN TAXES to meet the EU ZONES TARGETS
Spain to see MASSIVE CUTS and A 21% RAISE IN TAXES to meet the EU ZONES TARGETS Spaniards will have to further tighten their belts as new taxes and spending cuts are being introduced. Prime Minister Mariano Rajoy has announced new austerity measures in order to slash the budget deficit by €65 billion by 2014 as Spain struggles to meet tough targets agreed with Europe after five years of economic stagnation and recession. Rajoy proposed a 3-point hike in the main rate of Value Added Tax on goods and services to 21%, and outlined cuts in unemployment benefit and civil service pay. He also announced new indirect taxes on energy, plans to privatise ports, airports and rail assets, and a reversal of property tax breaks that his centre-right People's Party restored last December. The Prime Minister pledged in his election campaign last year not to raise VAT now says he had no choice. The main rate will rise to 21 from 18% and the reduced rate to 10 from 8% in a move that could further discourage consumer spending. Prime Minister Mariano Rajoy's tax hike announcement has received a hostile reception from ordinary Spaniards. Miners have spent the last two weeks walking from the north of the country to join tens of thousands of at a protest in the centre of Madrid. Police have fired rubber bullets during the demonstrations. The tax rise announcement was been criticised by the opposition. "These measures are not pleasant, but they are necessary. Our public spending exceeds our <b>...</b>
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