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Spain Announces A Harsh New Austerity Budget

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.

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We're still hearing about more details of the budget, but here's what we know so far (from Bloomberg unless otherwise noted):

spain storm in extremadura
Charly Morlock
  • 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 percent and 17.8 percent, respectively.

     

More to come as more details become available.

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