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President of the Government rules out further increases to Personal Income Tax and VAT in 2013

Mariano Rajoy is not considering further VAT or Personal Income Tax increases in the 2013 Budget and hopes not to have to take such difficult decisions for the Spanish people as those taken during the first months of his term in office.

The President of the Government also calls for greater economic and fiscal integration within the European Union; “no steps backward will be taken; not by the Euro, not by the Single Market and not by the Union”.

The President of the Government, Mariano Rajoy, received the President of the Republic of France, François Hollande, at Moncloa Palace on Thursday. They discussed matters on the international and bilateral agendas, including the situation in Spain and the Eurozone.

At the press conference they gave after their meeting, Mariano Rajoy said that he disagrees with raising taxes but took that step because it is necessary for growth and to create jobs. “As soon as I can, I will ensure that the situation returns to where it was at the beginning”, he said.

Mariano Rajoy went on to explain that the government will try to come up with a Budget for next year that enables Spain to meet its deficit commitments with the European Union. “I hope we won’t have to take such difficult decisions as those we took in the first months of this legislature”, he said.

He then told François Hollande that he is determined to continue with the reformist agenda. “Spain has demonstrated its European determination and responsibility through a strategy of far-reaching fiscal consolidation and an audacious agenda of structural reforms unprecedented in the European Union”, he stressed.

Working together to defend the Eurozone

The President of the Government of Spain said he agrees with the President of the Republic of France on two decisions adopted at the most recent meeting of the European Council: the agreement reached on a growth pact; and the process of economic and fiscal integration within the EU.

Mariano Rajoy feels that the proposals presented by Spain for obtaining greater integration have been welcomed by the European institutions and trusts that Member States will now take some “important decisions in December”.

“These ambitious proposals defend greater economic, fiscal, banking and institutional integration. They aim to strengthen solidarity among Member States and citizens, and ensure that Member States and institutions (each one within the scope of its responsibilities and in the spirit of unity and solidarity) act swiftly and decisively. We want the EU to move forward and I will be very clear on this: no steps backward will be taken; not by the Euro, not by the Single Market and not by the Union”, he said.

As he said on Wednesday after meeting with the President of the European Council, Herman Van Rompuy, Mariano Rajoy expressed his conviction that Greece will meet its commitments and return to sustainable growth.

International current affairs and the bilateral agenda

Mariano Rajoy and François Hollande exchanged points of view on the situation in Syria. “We will continue working closely with the rest of our European partners on seeking a negotiated solution at the United Nations Security Council. We agree that the solution to this crisis must include Bashar Al-Assad leaving power”, said the President of the Government of Spain.

The two leaders also examined the situation in Mali. Mariano Rajoy said that Mali “needs to overcome its current humanitarian crisis and, to do so, it needs to undertake a transition that will return democratic normality to the country”.

Mariano Rajoy and François Hollande will meet again in France on 10 October at the Spain-France Summit. “Two such fundamental partners must ensure that we maintain on-going and comprehensive dialogue, the greatest expression of which is the bilateral summit”, insisted Mariano Rajoy.

Liquidity for regional governments

Mariano Rajoy reiterated that Central Government will help those regional governments in Spain suffering from liquidity problems to refinance their debts as it has been doing since the start of this legislature. “This does not mean more debt. It means that the regional governments will refinance their debts. The State will help them but the debt will remain the same and will still be held by the regional governments”, he said.

“What’s needed here is not just a reduction of the public deficit and structural reforms. What we need is for the Euro to stop generating more doubt in Europe than we already have because it is making it hard for our public administration services, our financial entities and our companies to finance themselves”, he concluded.

Source: Lamoncloa.gob.es
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