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Fiscal reforms

Basque Premier opens the way for higher taxation

Staff

06/24/2011

Patxi López's proposal of a possible tax hike was, he said, because reducing the current public deficit "is necessary but not enough, given that things will not go back to how they were before."

  • Patxi López at Friday's assembly.

    Patxi López at Friday's assembly. Photo: EFE

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Basque President, Patxi López, said on Friday it would be necessary to "analyse the need for broader basic tax" and "recover certain taxes, should it be necessary," in order to ensure the sustainability of public services.

The lehendakari was speaking during a General Assembly at the Basque Parliament, in answer to a question put forward by left-wing group EB regarding his forthcoming meeting with newly-elected Deputy Generals, at which he is scheduled to discuss fiscal reforms.

The Basque President said he was "convinced" that taking measures to reduce the current deficit in public funds was "necessary but not enough. Among other things, because we know things will not return to how they were in the past and we will not experience exponential increases in income."

López stressed the need to "generate public resources which will give us the capability to face up to all these questions". In his view "this will be achievable through economic growth, fighting fraud and charging sufficient tax".

After reminding the Chamber that the responsibility for taxation and finance in the Basque Country rested with the Provincial Councils, he said it would be necessary "to reach a consensus" via the Coordinating Tax Body - formed by the Basque Government and the Basque Provincial Councils - "in order to carry out alterations that will ensure a higher level of solidarity and justice in the area (of taxation)".

As such, the scheduled meeting between the lehendakari and the leaders of the Basque provincial councils should mean that over the next few months, "tributary measures or alterations" can be proposed in-line with the following criteria: "without hindering progress or economic recovery, the achievement of greater justice in the distribution of the fiscal burden, in order to achieve more equality between those with the most and those with the least to offer."

López also insisted that one of his government''s main priorities over the next two years would be the creation of jobs and the reduction of unemployment. He announced that after the summer recess, he would be putting a number of programmes and concrete measures on the table as part of a special plan to which all Government Departments would contribute.

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