Cristóbal Montoro said yesterday for the first time, after having denied it for several months, that the Ministry of Finance would raise the VAT and energy and environmental taxes.
It's hard to fathom why the government has resisted raising the VAT for months even though the EU recommended this measure for Spain months ago. Ultimately, it looks like an obvious step to take.
Perhaps because the tax policy that the current government has tried to put in place does not align with the rest of the EU's vision, particularly the nations who have suffered an intervention, and that is what they don't to admit: the EU is drawing out the path that Spain must follow. Waiting to admit that is doing to wind up being a costly mistake.
