The rise in purchase tax, IVA (Impuesto de Valor Añadido or Value Added Tax) is attracting a good deal of criticism from every opposition party, as well as the general public – even conservatives from the governing party’s own ranks, but the Government is determined to see it through.

The only positive element is that it won’t come into force until the 1st of September, so the summer tourist season won’t be affected. Although the Government claims that this elapse is because it can’t be done before, most think that the Government realised that imposing it before would destroy a good percentage of 2012 tourism; a sector that Spain heavily depends upon.

Protests on the streets are growing over the Government’s plans, which include tax increases and cuts in the public sector and unemployment benefit. Even the regional consumer rights body, FACUA, is encouraging consumers to stage a consumer strike on the 19th – that’s how bad it is. Meanwhile a conservative councillor in a small town in Cádiz has handed in his party membership in disgust.

Furthermore, the Parliament building has had crowd barriers erected around its entrance; a clear sign that the political class is preoccupied over the reaction of the Spanish public.

The Government claims that there is no alternative other than to slash the education and public-health sectors but the online social networks are alive with observations over the tremendous drain that the political parties are putting on public finances and that if this unjustifiable sector of public spending were slashed, instead, there would be no need to touch pensions, education and public health. Although neither of the two major parties openly recognise that there are just too many politicians, the Spanish general public are ever more vociferous in pointing it out.

So, not even the Government absolute majority and overuse of Royal Decrees to pass laws, rather than through Parliament, can really survive a massive surge in popular unrest – something will have to give, and more than likely, it will be the Government.

However, the Secretary General of the PP, Dolores de Cospedal (pictured above), who is also the Regional Prime Minister of Castilla-León, receiving salaries for both posts, by the way, insists that the measures, although difficult and unpopular, are indispensable for the economy and the effort to restore confidence in Spain’s capacity to pay its way – market forces do not reflect a growth in confidence however; quite the opposite.

(News: Spain)