The crisis has not only exacerbated Spain's underground economy, which according to data from the Ministry of Finance has robbed 70 billion euros from state revenues, but has increased fraudelent unemployment applications.
The Ministry of Labor has focused its effors on reviewing this form of fraud with promising results. It has shown that 40% of unemployment benefits under investigation are fraudelent, because the recipient of said benefits is receiving some form of compensation within the underground economy. The wrongdoing also extends to made up companies, which have increased in number by 500%.
Getting rid of this kind of fraud will not only allow the government to recoup revenues, but also improve the credibility of the efficacy of our government institutions.
