No moves to raise taxes any time soon, minister says

Spanish Economy Minister Elena Salgado said Wednesday the government has no plans to hike taxes in the "short term."

"At this moment there is nothing on the table," Salgado said in an interview with local radio station Onda Cero. "Consumption needs to recover before thinking about increasing taxes."

Salgado was speaking after Public Works Minister José Blanco on Tuesday said it was impossible to maintain Spain's transport network without raising taxes.

The economy minister said even through the tax burden in Spain is seven to eight points below the average in Europe, Blanco's comments referred to the long-term situation.

Labor Minister Valeriano Gómez on Wednesday called for higher taxes on top earners entitled to "obscene" remuneration packages.

"It doesn't seem logical to ask workers for sacrifices and wage moderation while at the same time maintaining such obscene remuneration schemes" for bankers, Gómez said, echoing earlier remarks by Deputy Prime Minister Alfredo Pérez Rubalcaba, who accused the banks of being responsible for the financial crisis by offering rewards to take risks.

However, Salgado said her Cabinet colleagues were referring to incentives rather than wages, adding that bankers' salaries should not be taxed any differently from any other profession.