|Graphic by Laverdad.es http://www.laverdad.es/RC/201208/31/Media/iva1.jpg|
The Prime Minister gave his assurances that if Spain continues on this path it will begin to regain confidence as a country, showing that it is "serious and dutiful", enabling cheaper financing and attract investment to return rapidly to grow and create jobs.
It is very easy for him to offer this long term hypothesis as justification for the increases in VAT but it is the unemployed, the low income workers and the pensioners who will be those who suffer the most in the present time. They will suffer because of the failings of the monied elite.
How much closer will the state of the Spanish economy get to that of Greece? How much longer will it be before the citizens of Spain escalate their demonstrations against the policies of the rightwing Partido Popular government led by Mariano Rajoy?
VAT increase causes inflation to jump to 3.5 percent in September.