EU tells Spain to put IVA up again, and slash social spending

The EU “troika” has issued a report on Spains economy which says that progress in modernising the nations outdated social network is, whilst satisfactory, rather slow.

It urges Spain to either up IVA again, or failing that, shift as many goods as it can into the high 21% band; slash social spending again, reign in the regions and increase the age of retirement once more.

The EU calculates that Spain is currently running a 10 billion euro deficit (10,000 million) on its pension scheme and warns that the nation cannot afford to continue to pay pensions unless it ups the pot.

They have again requested that Spain introduces a more efficient and transparant budget control office to oversee spending.

This week saw unemployment raise again, passing the five million unemployed level for the first time.

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