by Jason Moore

After reading yesterday about the Spanish government´s latest round of spending cuts, I am rather baffled how the government wants Spain to ever recover. Increasing the VAT rate on all goods and articles will mean that people will spend less. Tourists visiting Spain from euro-zone countries will find that it is even more expensive than usual. British tourists, who were celebrating the fact that the pound is now stronger against the euro, will discover that the rise has been wiped out by the higher VAT rate. So really it is a no-win situation. Now, the Spanish government had little option but I do really think that there are easier ways of making cuts. A prime example is the Council of Majorca. Is it really needed when each area of Majorca has it own council and of course there is the Balearic government? Island and regional councils could easily be abolished saving millions. Also, why does each small town and village needs its own council? I would propose to create super councils in Palma, Inca and Manacor which would cover all areas. The savings would, again, be enormous. I think the Spanish government needs to show the necessary political courage in these hard times and take decisive action. Spain has far too many layers of regional authorities. In the case of the Balearics there are four (councils, Council of Majorca, Balearic government and the regional offices of the Central Administration). Savings can easily be made.

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