They call it operación retorno: hundreds of thousands of Spaniards get into their cars at the end of their holidays and drive back to their towns and cities to resume their lives. This year, like most, it has seen endless queues of overheated cars fill Spain’s roads on the last weekend of August, peopled by families dreading the return to the office or school. Just eight months into his tenure and with a handsome majority in Congress, Mariano Rajoy should be bounding back to work with a springier step than most. But instead, the prime minister could be forgiven for wishing he were in one of those sweaty, late-summer traffic jams. Rajoy’s honeymoon period finished months ago, if indeed … [Read more...] about Rajoy prepares for an autumn of discontent
eurozone debt crisis
Spain’s tax hike threatens La Liga’s appeal
One of the first moves by Spain’s new Mariano Rajoy-lead Partido Popular government has been to increase the maximum personal income tax (IRPF) rate by seven percentage points to 52 percent for annual salaries over €300,000. Given the shocking state of the Spanish government finances this should not really have been a difficult decision to take, especially considering the small percentage of Spanish tax-payers affected. For most Spanish citizens the most visible losers (of this particular increase) will be the football teams they follow. Spain’s politicians have traditionally been keen to be seen to support football, and a past PP tax ‘incentive’ aimed at attracting higher earners from … [Read more...] about Spain’s tax hike threatens La Liga’s appeal
Read my lips: Why did Rajoy break one of his few campaign promises?
“My intention is not to raise taxes.” It’s a line that Mariano Rajoy’s critics will repeat back at him for years to come. Much like George H. W. Bush’s infamous “Read my lips: no new taxes”, Rajoy’s pledge, made on December 19, during the debate ahead of his investiture as Spain’s new prime minister, has proved to be empty. Unlike Bush, Rajoy has not resisted or dragged his feet in performing a spectacular U-turn on this issue. Eleven days after saying he wouldn’t raise taxes, his deputy prime minister, Soraya Sáenz de Santamaría, announced tax increases that will bring in an extra €6 billion this year. As Spaniards digest the implications of the new Popular Party government’s … [Read more...] about Read my lips: Why did Rajoy break one of his few campaign promises?