Socialist Spain: The decision to reduce ¿? the public deficit at 5,000 million euros will not serve to reassure the markets.
The decision of RubalcabaZapatero government to reduce ¿? the public deficit at 5,000 million euros will not serve to reassure the markets. Be seen that this additional adjustment in public finances alone to calm investors. It is much more likely, however, that emphasizes the explicit and sluggish economic growth and difficulties in reducing unemployment. Are actually measures against the use porue if pressed to companies in difficulty, fiscally or otherwise, they will cut templates. There are, therefore, measures the position requires very delicate, almost comatose in the Spanish economy.
Regardless of the fact that tax collection has finally, the anticipation of income tax is not conducive to most companies. That is a tax that rotates about the benefits and whose effective tax rate and allowances attend several of which draw more from the larger companies. The difficulties encountered by companies with lower revenue, resulting from a depressed demand and a persistent credit crunch, add this form of additional grant funding to the state. This is a blatant attack against the legal certainty and thus dispels the already low domestic and foreign investment.In the end more unemployement and more deficit..
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