“Spain will return to economic growth in 2014″, says Rajoy
November 10, 2012 1 Comment
The Spanish Prime Minister insisted that all the measures being taken by the Government of Spain are with a view to economic recovery and added that he anticipates being able to lower taxes in 2014. He also expressed his confidence that employment and growth forecasts contained in the General State Budget for this year will improve and insisted that “2013 will be better. We still may not have reached the lowest point but we will start to see improvement, especially in the latter half of the year, and the economy will start to grow again in 2014″.
In an interview with Cadena Cope earlier this week, Mariano Rajoy said that “reducing the public deficit is our top priority”. It must be lowered to 6.3% this year “at a time of economic recession and a shortage of financing, which is why we have raised taxes and cut spending”. In spite of that, he stressed that no further tax increases are on the cards. “What I want, because I believe in it, is to lower taxes and I hope to do so in 2014″. He also rejected the idea of lowering public sector wages in 2013.
The President of the Government argued that the difficult decisions taken until now have all been “aimed at enabling economic recovery”. The labour reform, the financial restructuring and the reform of public administration services, which he said “we’ve been talking about for 30 years and will now finally be carried out”, are some of those steps, the true effectiveness of which will be revealed when economic activity returns. Rajoy added that, for the time being, Spain is going through a debt reduction process and said “it is very difficult during any process of debt repayment to ensure that money is available for investment and consumption. But this process is essential because otherwise nobody will finance us”.
The Spanish Government newsletter, La Moncloa, reported that when questioned over whether Spain should request aid from the European Union or not, Rajoy reiterated that this decision has yet to be taken. The Government of Spain will eventually make that decision, he explained, and it “will be solely and exclusively aimed at guaranteeing the general interest of every Spanish citizen. I have not discarded the possibility of going down that path; it is an option that remains open to us”.
Article source: Kyero.com