Spain faces cuts of €20 billion

LAST UPDATED: 4 Dec, 2012 @ 20:03
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Spain faces cuts of €20 billion

SPAIN is facing EU subsidy cuts of €20 billion, meaning that for the first time it will become a net contributor – one which pays more in than it gets out.

The reduction, scheduled for the period 2014 to 2020, will reduce Spain’s GDP by 2%, further damaging the country’s already fragile economy.

The cuts will affect agricultural subsidies by 17% and ‘cohesion funds’, payments made to help balance disparities between regions, by 30%.

3 COMMENTS

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  1. Why is everyone up in arms?
    All the government has to do is raise taxes again. Its obviously working so well, it can be done again and again…

    As long as all these ‘functionarios’ continue to have a job-for-life with well over market rate salaries, only the poor and middle class will suffer, and who cares about them…

  2. Fred, it’s not the middle class who will suffer, but the poor. Fewer cohesion funds mean fewer regional development projects which means higher unemployment. The middle class consists mostly of those funcionarios you complained about.

    The middle class will always be OK because by definition they don’t live hand to mouth. It’s the rest of us who are being kicked in the teeth.

    Thanks, Merkel!

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