Checking account balances have reached a whopping 1.357 billion euros, which is the highest since 1997. The figure is relevant becuase it shows that the economy has the capacity to finance itself for the first time in sixteen years. The significant change is attributable to a major spike in exports as well as improved rates on rentals and services domestically.
To ensure that the trend continues for the next few months, the Finance Ministry needs to offer its support. It has been hindering rather than helping the export market. The department, led by Minister Cristóbal Montoro, is causing annoying delays for exporting businesses, particularly the small ones. The export companies pay VAT taxes for products that they export to other countries, but these products are technically not subject to this tax. When the companies file for a deduction, the Finance Ministry is not granting this deduction within 30 days as it is supposed to.
In fact, the average length of time has reached 50 days (in 2010 it was 42), but in many cases the delays extend to at least five or six months. This is too long for many small companies who are still struggling to get much-needed financing. From a legal perspective, the national tax agency is not violating the law that it created, because it can wait up until six months to send companies their deductions with interest.
But this situation should not happen, at least not with small companies struggling to stay in business. It is unacceptable for the government to use these companies to finance itself and square its accounts. Also, the government should be careful about undermining the export market, because next to tourism it has been the main motor driving the Spanish economy.
