Palma.—The Balearic government has failed to convince the Chamber of Commerce about funding for businesses under next year's regional budget.
Chamber of Commerce representatives and their President Joan Gual de Torrella made their displeasure known yesterday at a meeting with government Vice-President and Balearic Finance Minister, Josep Ignasi Aguiló. Gual de Torrella claimed that the 2013 budget and new taxes being imposed on businesses will seriously jeopardise consumer confidence.

Gual de Torrella made specific reference to some of the new taxes approved by the government which, he said, “will do nothing to promote economic recovery.” He said that the fiscal pressure will merely create a vicious circle whereby the regional government will also “lose out” because it won't be getting sufficient income from business taxation.

Gual de Torres said before the meeting began that the budget law is crucial at a time of crisis and furthered that the government should make a greater effort to reduce the public administration sector.

The Finance Minister said that he had called the meeting to explain the budget to the Chamber of Commerce because it was the “only option” at a time of grave economic crisis. He said that the budget follows government policy established at the start of the Partido Popular's most recent term of office in the Balearics.