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Prime Minister-elect Mariano Rajoy announced yesterday that he will freeze public-sector jobs, move all public holidays to Mondays, stop early retirements and cut the deficit by 16.5 billion euros as part of his grand plan to move Spain out of its deep economic crisis.
These are some of the biggest pledges the Popular Party (PP) leader made for the next four years during his investiture speech, which was delivered to Congress on Monday morning.
The only increase in spending, he said, would be in pensions, which will be brought up to date with the consumer price index from January 1.
The future prime minister, who has kept the plans of his incoming government close to his chest since winning the general elections on November 20, predicted that Spain's exit from the crisis would be guaranteed by the cuts, as well as by fulfilling the country's commitments to Europe. The austerity drive introduced by the outgoing government of José Luis Rodríguez Zapatero involved savings of just 10 billion euros.
"I am willing to hear proposals from everybody but I think that the priorities should be to concentrate on economic growth and job creation," Rajoy said.
Socialist leader Alfredo Pérez Rubalcaba warned that the new PP government would be making drastic cuts in the public welfare system and social policies.
"So when are we going to get the bad news?" Rubalcaba said during the debate. The Socialist leader accused Rajoy of "knowing where the cuts" will be made but declining for now to say where.
Rajoy has made cutting the country's public deficit one of the main pillars of his mandate. He said the country may miss its target of cutting the shortfall to 6 percent of GDP this year from 9.3 percent last year, but insisted the goal of reducing it to 4.4 percent of GDP next year would be met.
In his 84-minute speech to Congress, Rajoy said he would carry out state reforms to avoid duplications, reduce costs and improve efficiency. This will include a freeze on all public-sector jobs except for those in "state security forces and basic public services."
Rajoy also pledged not to raise taxes at the current time. But he said he would reform the manner in which small businesses and the self-employed pay value-added tax (VAT).
Source: EL PAIS
Moreno has insisted that any work that is not licensed will be subject to the “pickaxe” once all the guaranteed judicial terms have been offered to the offender.” The Deputy Mayor also pointed out that this decision is in strict accordance with the law.
In the new document to be forwarded to those persons who commit any urban violation from this day, November 15, it calls for the restitution of land to its natural state, with the demolition of the part of the illegal construction already built, and warns that in case of not meeting this rule, you risk a penalty, regardless of the fine for violations ranging between 600 and 3,000 Euros. In case of failure to carry out the demolition, it will be accomplished by the Town Hall at the expense of offending owner.
The new notification also warns that companies supplying electricity, water, gas and telephone will be asked to terminate these services to illegal buildings. Offending parties should also know from today that the Town Hall shall inform the Fiscal Ministry (prosecutors) of each illegal situation, so that they will act accordingly applying a wide range of criminal and administrative penalties.
The Planning Councilor explained that “we need cut off point in the disorder of illegal constructions, because it leads to an unmanageable situation for the Town Hall.” This has been added to the already launched “regularization of property plan” and that in the “the General Plan (PGOU) is seeking urban land in the out lying districts” so that “from now on there is no excuse” .
Moreno finished the statement that from now on, she is willing “to enforce the law until the end”, while she assured that the announced measures will be implemented from tomorrow onwards.
Source: http://expatsolutions.wordpress.com/
The European Commission adopted a defensive stance on 26th July, saying that Spain could introduce restrictive measures against Romanian workers "under exceptional circumstances". The EU executive said Spain had no legal right to impose such a ban.
Asked about controversial Spanish plans to ban Romanian workers on the Spanish job market from August, a Commission spokesperson retracted from previous statements according to which Madrid could not legally impose such limitations.
Chantal Hugues, spokesperson for Internal Market Commissioner Michel Barnier, said that Spain could impose such limitations under exceptional circumstances. She said the EU executive had received a letter from the Spanish authorities outlining their concerns, which it was studying.
In fact, Spain was among the first countries to fully open its job market to the EU's latest newcomers, Romania and Bulgaria.
However, as a consequence of the crisis, Spain now has the highest unemployment rate in Europe (over 20%) and is considering imposing restrictions on its job market. As Romanian workers in Spain are more numerous, the planned restrictions do not concern Bulgaria.
Madrid has now informed the Commission on statistics regarding Romanian workers on its soil and hopes that restrictions could be impose as early as from August.
As the measure by Madrid is unprecedented, the EU executive has recognised that it finds itself in new territory. Reportedly, the restrictions to be imposed by Madrid would concern only new arrivals of workers. Also, the tourist traffic would not be affected, as the Romanians are free to visit any EU country for a stay of up to three months.
According to some reports, the measures to be put in place by Madrid could inspire other EU countries to impose limitations to their job market to citizens from Bulgaria and Romania. The Netherlands already announced that it would grant Bulgarians and Romanians as well as foreigners from outside the EU a work permit in the Netherlands under "exceptional cases".
The move, which will come into force in the coming days, is supposed to curb the flow of workers from the eastern European country to ease pressure on Spain's job market. The Spanish government decided to restrict the access of Romanian nationals because of the country's high unemployment rate (20%).
The government said the restrictions would not apply to Romanians already working in Spain, but it remains unclear what will happen if and when their contracts end. Under the new restrictions, Romanians will need a work permit and a work contract before they can enter Spain.
A European Commission spokeswoman confirmed that the Commission had received a letter from Spain explaining its decision. She said the Commission would analyse whether the move was in line with EU rules on free movement.
The number of companies created in Spain increased by 2.2 percent in 2010, after three consecutive years of decline. The number of companies started up in 2010 totalled 79,963, 2.2% more than in 2009, representing the first increase after three years of continual decline. The subscribed capital for the newly founded companies reached almost 7.999 million euros, 66.9% higher than the previous year. In addition, the average subscribed capital per company was 100,033 euros, a 63.2% rise on 2009. As for the 18,467 companies dissolved, 75.7% did so voluntarily, 11.1% merged with other companies and 13.2% were wound up for other reasons.Source: Think Spain. | ||
Spain's Tax Office (AEAT) will be paying closer attention to professionals they suspect of failing to fully declare their income, and those claiming unemployment benefit while working on the side, in an effort to bring a greater portion of the country's underground economy to the surface.
At a time when the government is striving to fill a huge hole in its finances, the AEAT's action plan for 2011 was presented Monday in the official gazette. Tax officials are being asked to be on the lookout for professionals with signs of wealth that are incongruent with their tax declarations. They will also be trying to keep tabs on false declarations of expenses.
In their battle with tax cheats, inspectors will step up joint action with their colleagues in the treasury and labor arms of the Social Security system, and will make visits to businesses where undeclared activity is suspected.
Source: EL PAIS.
