Politics
New government
Reuters
Spain's incoming Prime Minister Mariano Rajoy promised deep cuts in public administration spending to meet tough deficit targets while offering tax breaks for companies on Monday.
Photo: EFE
ECONOMY
- Current signs show Spanish economic growth in the fourth quarter will be negative.
- More companies to be eligible for a reduced corporate income tax rate of 20 percent.
- Public holidays to be moved to nearest Monday to avoid excessively long and costly weekend breaks.
BUDGET
- New government's first proposed legislation to be law on budget stability.
- Structural deficit to be fixed at 0.4 percent of Gross Domestic Product from the start of 2020.
BANKING SECTOR
- Banking sector reform to be finalised.
- Banks need to sell property assets, which will make a second wave of bank restructuring necessary.
JOBS
- Companies to get 3,000 euro tax break for taking on first employee.
HOUSING
- Tax relief on purchasing homes to be reinstated.
PENSIONS
- Pensions to be increased in real terms from January 2012.
CIVIL SERVICE
- Government to overhaul the public administration to get rid of overlapping services.
- Hiring freeze in public sector, except security service.
ENERGY
- Consumers cannot be expected to bear the entire burden of the energy sector's tariff deficit by paying higher tariffs.
REGULATION
- Number of regulatory agencies to be cut.
BROADCASTING
- Management reforms to be introduced for public television stations.
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