Spain Announces A Harsh New Austerity Budget

spain storm in extremadura

Photo: Charly Morlock

Spanish Deputy Prime Minister Soraya Saenz de Santamaria spoke in Madrid after a cabinet vote on a new budget that would impose the harshest austerity the country has seen since it transitioned to democracy over 30 years ago.We’re still hearing about more details of the budget, but here’s what we know so far (from Bloomberg unless otherwise noted):

  • The country will freeze civil servant wages.
  • It won’t raise the VAT tax but will increase taxes on corporate income.
  • Ministries will cut spending by an average of 17% (Dow Jones).
  • Jobless benefits and pension structure will remain the same.
  • According to Reuters, the government expects “tax modifications” to increase revenues by €12.3 billion this year. That means that revenue generated by income and corporate taxes will increase by 4.3 per cent and 17.8 per cent, respectively.  

More to come as more details become available.

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