The Canary Islands will not raise taxes or lower public spending to face the crisis

2020/07/07 16:03:53 Written by Canarian Weekly Business

The Vice President of the Government of the Canary Islands and Minister of the Treasury, Román Rodríguez, has guaranteed today (Tuesday), that the regional government will not raise taxes or lower public spending to face the economic crisis derived from the coronavirus pandemic.

"We can resist this critical moment. We are going to keep it through thick and thin,” he said stressing that the “savings” of 4 billion euros accumulated by the public institutions of the islands will be used, aid from the European Union and the central government will be “fought over” and they will go into debt if necessary.

On this point, he explained that the calculations of the autonomous community, will go through a "moderate indebtedness” of around 500 million euros annually between 2021 and 2023, which equates to 1.5% of the Canary Islands GDP, although it has shown great confidence in the use of the surplus of the Canarian administrations. "Well managed and administered funds may be the solution," he said.

He added that they are not going to "reduce public spending by a single euro" because the health crisis "is not yet resolved.”

"We are going to see how we handle ourselves because a second wave would be deadly for the economy and re-confinement is not ruled out," he commented in reference to the outbreaks that are emerging in various parts of the mainland.

Rodríguez has predicted that the fall in GDP in Spain will reach 13% this year, and in the Canary Islands it will be around 20%, but he insisted that taxation will not be touched until the crisis is over, which “will last three years”, including the inheritance and gift tax, which will continue as already passed in the autonomous budget law.