Spain

At the beginning of 2008, Spain experienced an unprecedented bust in the housing market. The bust triggered a banking crisis and a recession. Moreover, Spain has dealt recently with political…

Spanish government has just announced it will cut some taxes. The actual cut will not come until early next year, and just like a Spanish rodeo arenas, it has a sunny and a shady side to it. The sol is the riddance of tax breaks. The sombra, however, is ushered by the EU pressing for higher taxes.

By Nicolas Lecaussin

The French government recently announced the creation of 100 000 green jobs over the next three years. The goal is of course to stem rising unemployment. However, the tangible results of creating green jobs in several countries, as well as the real costs of these jobs, should have given food for thought before taking action.

In France, an IREF study (“Les mythes des emplois verts”) published in early 2011 showed that the term is ambiguous and calculated the real cost of a green job, based on official reports. The definition of green jobs is rather vague, although there is an official handbook on green growth (“Focus on 50 professions for green growth”). Among these, most already exist (gardeners, sewermen, cleaners, geologists …). Others seem to come straight out of a vaudeville: nature discovery guide, eco-museum guide, eco-interpreter, nature guide…

is the amount needed by Spanish banks to avoid the clash, revealed the Spanish government last week. This is supposed to be good news for European taxpayers who will have…

Last March 30, the Spanish Government announced its most important measures to reduce the fiscal deficit for 2012. These actions have been based on reducing public spending and, again, increasing taxes. “Again” because on December 30, 2011, the conservative new Government already raised the Personal Income Tax, making Spain one of Europe’s most heavily taxed countries.

The Rajoy administration in Spain announced two months ago one of the largest tax increases in recent Spanish history. It aims to raise 6 billion euros ($7.9 billion) — along with a spending cut of nearly 9 billion euros ($11.8 billion). The measure mainly consists of a so-called solidarity surtax to come on top of tax rates on income and capital gains; it also includes an increase in real estate taxes.

As is publicly known, Mariano Rajoy, leader of the Spanish Partido Popular, recently became president of the Spanish government. Mr. Rajoy is poised to introduce new measures needed by the Spanish economy in order to, in first instance, stop the bleeding (in general terms, but in particular regarding unemployment rates), and subsequently, to initiate a new positive trend for the country, as a relevant part integrated in the European Union economy.? ? Among the urgent measures, those related to taxation are essential to achieve a balanced economy.

When reflecting on the causes of the current economic and financial crisis, the huge upsurge in private debt is one of the most cited reasons. Some people insist on blaming the private sector for this. According to them, the sustainability of its behavior has been clearly put into question by the recent events. But, what lies behind this exorbitant private indebtedness? This article is focusing on the Spanish case, with some references to the United States.

The current Socialist (PSOE) government in Spain has claimed in different occasions that the low fiscal pressure that Spain has experienced in 2008 and 2009, gives policy-makers a large leeway to raise taxes. Besides, this measure has been supported as necessary in order to maintain –or improve- the current government-run social safety net and the level of public infrastructures. Angel Martin explains why raising taxes in Spain is not a really good idea.

Abstract: The arrival of the democratic State in Spain acquired its definitive form, at legal and institutional levels, when the General Courts approved the Constitution on October 31st, 1978, which was ratified on December 6th and sanctioned on December 27th. The establishment of a democratic regime and the recognition of freedom and rights, which our western neighbours already possessed, were complemented with a new set up of the territorial organisation of the state.