In his most difficult appearance in front of Congress since he took office, Prime Minister Rajoy is likely to talk about how the economy is improving and will underplay the Bárcenas case in an effort to make the appearance go well.
To ensure that it does, he is likely to announce a cut to Spain's personal income tax, the IRPF, which will undoubtedly have a major impact at public opinion polls and will cover up what he says about whether the Peoples' Party financed its campaign illegally or whether he was involved in that process.
Waiting until 2014 to lower the personal income tax (besides reducing the tax rate, the government is also thinking about raising the minimum amount of taxes people have to pay) will help Spain recover more quickly and have a direct impact on consumer spending. The decision is a good one independent of whatever political motivations Rajoy might have.
