European Commission

Only a week ago the President of the Government, Mariano Rajoy, bet by lowering the tax in 2014, turn to the measure. We will have to see what are the projections, explained De Guindos. The Minister of the economy, Luis de Guindos, has ensured this Tuesday during a recess of the Council of Ministers of EU (Ecofin) economy meet deficit target is absolutely priority for the Government, on top of keeping or not the rise in the income tax beyond 2013. A week ago the President argued for a lowering of the tax in 2014.

When you find a tight funding situation as that currently has the Spanish economy, the public deficit target is absolutely a priority, explained De Guindos, which however has made it clear that there is no decision taken. Mariano Rajoy said he thought turn, later to the measure. We will have to see. We will have to see what are the growth projections (up to 2014) and what is the evolution of the public deficit, in a European environment which is not simple and that projected for the eurozone recession this year of four tenths and is practically a stagnation of economic activity for which, pointed out the Finance Minister. According to economic forecasts from the European Commission, the Spanish public deficit this year will reach 8% of GDP (one point less if aid to banking are discounted), will drop to 6% in 2013 and will recover to 6.4% in 2014. These estimates are well above the objectives of 6.3%, 4.5% and 2.8%, 2012-2014 by Brussels.

Spain maintains its commitment to the European Commission has called on De Guindos that soon concrete fiscal measures by 2014, although not said if Brussels will ask new efforts or if you opt to give more time to the sanitation of public accounts to take into account more than nominal structural deficit. In its autumn forecasts, Brussels said that the upturn in the deficit in 2014 would come motivated mainly by the end of some measures put in place in 2012, as the rise of personal income tax. Black Cherry reiterated that the Government will maintain the commitment assumed with Brussels regarding the deficit target and does not arise to renegotiate it. Spain currently has an agreed reduction and stays in it. The Spanish Government considers that it is reasonable and it is making efforts to make it so, he said. The Vice-President of the European Commission and Commissioner for economic and Monetary Affairs, Olli Rehn said the Eurogroup on Monday which will discuss the implications of adjustments that have been made in Spain in July this year and the next, but that they are in line with what would be the fulfilment of the objective. Therefore, n or there is no approach () for the renegotiation now, said the Spanish Minister. As regards the structural deficit, De Guindos stated that it had not the slightest doubt that, with any methodology used, it will be clear that we are fulfilling the objectives. If a nominal setting of 2.7 points in 9% to 6.3% Spain made this year in a recessive situation of 1.

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