The Balearic government has added a further 100 million euros.

The Balearic government has added a further 100 million euros. | Jason Moore

Humphrey CarterPalma31/03/2022 09:49
TW
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At some point in the not too distant future, Spaniards may find themselves hit by heavy tax hikes.

This week, Spanish Prime Minister Pedro Sanchez unveiled plans to offer €16 billion in direct aid and loans for families and companies hit by the impact of the Russia-Ukraine conflict.

And the Balearic government has added a further 100 million euros.

All this comes on the back of the billions spent helping the country through the Covid pandemic with furlough schemes and other financial packages for small businesses and those socially marginalised.

€6.0 billion will be in the form of direct aid and tax rebates and €10 billion will be state-guaranteed loans to cushion the impact of the crisis on families and businesses.

All very well in the short term and obviously vital to help the country emerge from the pandemic, negotiate its way through the impact of the war in Ukraine and move forward.
Also, with the package of measures, Madrid is hoping to quell brewing discontent.
In addition to energy price hikes, consumers and businesses are dealing with supply bottlenecks because of protests by truck drivers.

But at some point Madrid, and to a lesser extent regional governments such as in the Balearics, are going to need to recoup the money and that could hit the public even harder.