Rajoy promises better times ahead after two years of pain
Government is pinning its hopes for re-election on tax reform
Almost two years into his mandate and after eschewing the fate of Greece, Portugal and Ireland in having to go cap in hand to ask Spain's European partners for a full-scale bailout, Prime Minister Mariano Rajoy on Wednesday promised the Spanish public better times ahead after suffering the impact of sweeping tax hikes, wage cuts and draconian cutbacks in spending.
Speaking to reporters in the corridors of Congress, Rajoy thanked the Spanish public for the sacrifices they had made over the past two "difficult" years. "Now that things are a little bit better, you can rest absolutely assured that we will overcome this situation," he said.
With unemployment still unacceptably high at close to 26 percent and the incipient recovery still anemic, Rajoy is placing his faith in an overhaul of the tax system to win back the faith deposited in him by voters in the general elections of November 2011, which swept him into power with an absolute majority. The ruling Popular Party has lost 10 points in voter support since then.
Rajoy has suggested that the fiscal reform, which has been left in the hands of a team of experts, will mean lower taxes. "Next year I will be back here to announce tax cuts," Rajoy said in September. However, Finance Minister Cristóbal Montoro has been cagier about an easing of the tax burden born by the public to cut the deficit in the face of warnings from the European Commission.
