Montoro just made a decision. As elEconomista has already reported, the Finance Minister will cap a new severance package tax at 180,000 euros. Thus, all of Spain will follow a system already in place in the Basque Country and Navarra.
The measure should be approved this Friday along with other tax reforms. If everything passes, Montoro will silence criticism from labor unions, management groups and even people in his political party who are unhappy about pushing an unpopular agenda leading into elections. Still, the measure brings us closer in line with severance tax policies throughout Europe and is an indirect way for the government to make layoffs cheaper, which the IMF and EU has been urging it to do.
