financial crisis in spain iva in spain iva increase in spain spain austerity bill spain unemployment a
The Spanish parliament has approved a €15 billion austerity bill, designed to protect the Spanish economy from a Greek-style meltdown and to reduce the GDP deficit from 11% to a targeted 6% in 2011.However, the motion was nearly defeated, as the bill was passed by the narrowest of margins – 169 votes to 168. The result of the vote is probably a reflection of the wider concerns of the Spanish people, already coping with an unemployment rate in Spain in excess of 20%, double the eurozone average. A main part of the austerity bill includes measures to reduce the salaries of public sector workers by at least 5% this year. With the rates of iva in Spain (similar to vat) set to rise at the end of June, many ordinary citizens fear a ´double whammy´ effect that will seriously affect consumer spending and lead to public unrest.
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