Summary

The fiscal reform proposed by the Government is a lost opportunity in terms of making further progress in correcting the imbalances in the Spanish economy, especially the foreign deficit, and fails to produce gains in productivity and competitiveness. The income tax reform (IRPF) is prejudicial to many families with children on average incomes, and also to young people who are hoping to buy their first home. The reform of the business tax is unsatisfactory and even counterproductive for many companies, given that the elimination of certain allowances will lead to an increase in the effective tax rate.