Bloomberg News

Spain’s Opposition PP Pledges Tax Cuts on Savings, Investment

October 31, 2011

Oct. 31 (Bloomberg) -- Spanish opposition leader Mariano Rajoy pledged tax cuts to encourage Spaniards to save, including tax breaks for pension plans and home purchases.

Rajoy’s People’s Party intends to introduce a new tax break for “annual increases in savings” that would include home purchases, it said in the outline of its electoral program today. It will “improve” tax rates on pension plans and cut levies for small companies, the party said, without giving details.

The PP may win its largest-ever majority in elections on Nov. 20, polls indicate, strengthening its hand to rein in the euro region’s third-largest budget deficit and bring down Spain’s borrowing costs. Rajoy will inherit an unemployment rate of 21.5 percent if he wins the election and has pledged incentives to encourage job creation.

His government would pass a law for entrepreneurs within 100 days of coming to power and offer “red carpet” treatment for those who create jobs, Rajoy said today at a party meeting in Santiago, Spain, at which the full electoral program is set to be approved.

--Editors: Eddie Buckle, Fergal O’Brien

To contact the reporters on this story: Emma Ross-Thomas in Madrid at erossthomas@bloomberg.net; Angeline Benoit in Madrid at abenoit4@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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