by Humphrey Carter

The Balearic government called it “intervene” yesterday, in the UK, it is commonly known as arbitration and steps most governments take to break deadlocks between unions and management to avert industrial action which could cause the economy serious damage.

So, the Balearic government does not want IVA (VAT) to go up, who does.
But their main reason is that it will reduce the region's ability to compete with other tourist destinations.
Sounds sensible but not when the British tourist industry has accused the Balearics of having a “death wish” and teetering on the abyss of killing this year's tourist season.

Coach drivers and the hostelry sector are going on strike and it has not gone unnoticed by potential customers from the UK.
But, while whingeing about IVA, which central government will decide, or rather the EU, the local government has said it is not going to arbitrate in the disputes between the coach drivers and hostelry sectors and management.

The government admits it is worried, so it should be.
What was once being touted as being another great summer season is now looking at being one of the worst with shelves of Balearic holidays still unsold in Britain and other key markets, the government only appears to be concerned about their VAT bills, not tourism which, without it, few people will be able to pay any VAT.

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