Experts recommend reducing direct taxes

A report drawn up for the government by a team of so-called experts has suggested a reduction in direct taxes and social contributions combined with the raising of indirect taxes, such as VAT.

Six years of job destruction

The Spanish economy destroyed jobs for the sixth year in a row in 2013, according to official statistics, with 198,900 positions being lost.

IMF revises growth forecast for Spain

The International Monetary Fund has revised upwards its growth forecasts for Spain for this year and the next but predicts that employment will continue to deteriorate.

Spain to get extra an two years to get its finances in order

The latest macroeconomic forecasts for Spain released by the European Commission are slightly more negative than its previous predictions and, as a result, Brussels appears willing to give Spain another two years to get its finances in order and bring its budget deficit back within the European Union ceiling of 3 percent of GDP.

No tax rises this week

In the wake of the latest unemployment figures, alarming economic forecasts and pressure from the EU for more austerity measures, the government of Mariano Rajoy is proposing new economic reforms but has ruled out another rise in income tax or VAT this week. Next week is another matter altogether.

IMF expects recession to deepen

The IMF on Tuesday predicted that the Spanish economy would continue to struggle this year, with the recession deepening and unemployment rising to a record level level of 27 percent.

European Commission critical of use of EU funds

The European Commission believes that Spain should be using European funds to invest in job incentives and the modernisation of small and medium-sized businesses rather than continually spending the money on building roads and carrying out endless infrastructure projects.

European Commission forecasts six million unemployed in 2013

According to the autumn forecast by the European Commission, unemployment will continue to rise in Spain, and predicts that the number of people without jobs will rise to six million by 2013. The report also questions the government’s outlook for GDP and the budget deficit.

Economy shrinks by 0.3% in third quarter

The Spanish economy contracted by 0.3% in the third quarter due to the negative contribution of domestic demand, measured by investment and consumption, although this was partly offset by the positive contribution of external demand, namely exports and imports.

Minister of Economy promises more reforms

According to statements issued by the Eurogroup during their meeting in Nicosia, the Spanish Minister of Economy, Luis de Guindos, has promised that Spain will meet this year’s deficit target and that additional measures will be taken if necessary  to achieve that goal.