New government
Spain next PM's proposals to parliament
Reuters
12/19/2011
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.