Spain is a paradise for financial fraud and the European Union´s underground economy. While the European Union has pressured Spain to make cuts in their federal budget and social spending in order to meet deficit goals, various studies and international institutions have indicated that financial fraud and the underground economy have compromised between 23% and 25% of Spain´s GDP
A figure that is nearly double that of the leading fifteen countries in the EU.
These studies, compiled by the Sindicato de Técnicos de Hacienda (Gestha), also include diagnostics from the International Monetary Fund (IMF), the Círculo de Empresarios and the Universidad Pompeu Fabra, among other organizations.
And they underscore that these figures signify that "each year a fourth of the country?s earnings are not taxed," effectively robbing about 90 billion euros from the state?s coffers. In this context, by reducing the underground economy by just 10% and aligning it with levels seen in other EU countries, "we could collect an extra 25 billion euros in taxes per year."
Urgent priorities
This amount is equivalent to a third of the Greek bailout costs, and analysts from Hacienda conclude that with the extra money "we wouldn?t have to resort to tax hikes in the future."
Translated and Edited in English by Brandon Dyches and Jose L. De Haro
