The ruling Spanish Socialist Workers' Party (PSOE) and the NP came to an agreement on a draft law that the constitution will be introduced in the history of second amendment of the document, which provides that the deficit countries in 2020 will not exceed 0.4% of GDP. Earlier Tuesday, during an emergency meeting of the lower house of the Spanish Parliament (Congress of Deputies), Spanish Prime Minister Jose Luis Rodriguez Zapatero made a surprise proposal – to amend the constitution, prescribing the maximum allowable size of its budget deficit. In his view, the introduction of a basic law of the land for such a restriction would help to strengthen investor confidence in the stability of the Spanish economy in the long and medium term. In addition, at a meeting of MPs on Tuesday approved a package of measures needed to ensure that the country was able to fulfill their commitments to reduce the budget deficit. Budgetary savings expected, primarily due to changes in taxation and public health. Spanish authorities have suggested an extra tax on profits from large companies. Due to this step, the state budget will receive additional 2.5 billion euros. The second most important measure to reduce the budget deficit is to reduce spending on pharmaceuticals, which will allow Spain to save up to 2.4 billion euros. The third crisis management measure – this reduction of VAT on the purchase of new property from 8% to 4%. It must act before December 31. Spain's Socialist government is trying to protect the fourth largest euro-zone economy from the debt crisis, which had previously swept Portugal, Ireland and Greece. The country faced the task of reducing the budget deficit to 4.8% of GDP this year, an increase in exports, the struggle with rising unemployment. Paris and Berlin have agreed to offer August 16 eurozone countries until the summer of 2012 to legislate measures to reduce the budget deficit and control over it.
Recent Comments
Related Posts
