Spain’s PM announces economic deal / Government announces tax hikes in bid to raise an extra €4.6 billion / Spain to raise minimum wage by 8 percent in 2017

One of the major tasks (and challenges) for the newly installed Spanish Government in November 2016 was to get a 2017 Budget adopted that was both agreeable to the Spanish Parliament in which the Popular Party did not have an absolute majority, while also securing the agreement of the European Commission.

On the 2 December 2016 the Spanish Government announced a series of economic measures, following discussions with the Socialists (PSOE), which were aimed at securing both the support of the Spanish Parliament and the European Commission. These measures included corporate tax rises, and added taxes on sugary products, alcohol and tobacco. In addition, the Spanish minimum wage would rise by 8%.

• Primary Source

ESO: Background information: Spanish unions reject budget adjustment demanded by EU http://www.europeansources.info/record/spanish-unions-reject-budget-adjustment-demanded-by-eu/

El País, 02.12.16: Government announces tax hikes in bid to raise an extra €4.6 billion http://elpais.com/elpais/2016/12/02/inenglish/1480695267_588835.html

El País, 02.12.16: Spain’s minimum wage set for biggest one-time hike since 1986 http://elpais.com/elpais/2016/12/02/inenglish/1480668922_493405.html

The Local.es, 02.12.16: Spain to raise minimum wage by 8 percent in 2017 http://www.thelocal.es/20161202/spain-to-raise-minimum-wage-by-8-percent-in-2017

European Commission: DG Economic and Financial Affairs: EU economic governance: Stability and Growth Pact: Draft budgetary plans of euro area Member States http://ec.europa.eu/economy_finance/economic_governance/sgp/budgetary_plans/index_en.htm

The Local.es, 01.06.17: Spain lawmakers finally approve long-delayed 2017 budget (despite Rajoy accidentally voting against it) https://www.thelocal.es/20170601/spain-lawmakers-finally-approve-long-delayed-2017-budget

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