The management of Pedro Sánchez and María Jesús Montero is atrocious. With the latest data, Spaniards suffer greater tax pressure than the average of the richest countries in the world. The fiscal pressure is placed, in accordance with the OECD, at 37.3% of GDP, 10% higher than the averagewhich stands at 33.9%. Left-wing economists affirm that this fiscal pressure is low and that it is lower than that of countries such as France, Denmark, Italy, Belgium, Austria or Germany or the average of the European Union, which is 40%, although it is not that different, since the average is shot by France, with a brutal 43.8%. It is not that it is very logical to compare oneself with France, which has been in economic stagnation for almost three decades and, with very high taxes, has a huge fiscal problem in addition to great social unrest. Comparing yourself to fiscal hells only occurs to a bureaucrat.
Tax pressure does not measure whether taxes are low nor has it ever done so. Measures tax revenue over GDP. That is, it is a collection ratio, not a measure of the country’s fiscal aggressiveness. Additionally, the ratio of tax revenue to nominal GDP is misleading because it is disguised with more public spending and more inflation. Indeed, they raise taxes and nominal GDP increases due to higher inflation and greater public excess financed with debt and, surprise, the fiscal pressure ratio moderates. That is why the fiscal pressure of France and Spain has “gone”, because the denominator is distorted by inflation and political spending, although in both countries taxpayers have suffered greater plunder.
Spain has the highest unemployment rate in the OECD, much smaller companies than our partners and the largest underground economy. That must also be taken into account.
Once adjusted to the economic reality of Spain, What is terrifying about the aforementioned data is that those of us who contribute in Spain pay many more taxes than the European average and the OECD average.. According to data from the Institute of Economic Studies and the Tax Foundation, the fiscal effort suffered by Spaniards is much higher than the average for an EU which, I repeat, is not exactly an example of fiscal competitiveness, growth and budgetary stability. Spain is in position number 33 out of 38 countries, with 56.3% tax competitiveness, below the position in 2023 (31) and well below where it was in 2020 (27).
The direct fiscal effort in Spain is 17 points higher than the European Union average and 82.2 higher than in Irelandwhich has a welfare state as solid or more so than the Spanish one. Our politicians never compare themselves to Ireland.
As the Juan de Mariana Institute’s “fiscal populism” report explains, Since Pedro Sánchez came to the Government, 81 tax and contribution increases have been approved in Spain. Furthermore, taxes have not been adjusted to inflation, which has accumulated an increase of 20.4% in his mandate. This represents an increase in collection taking advantage of inflation of more than 27.1 billion euros, which falls mainly on middle class families and SMEs. To this we must add the 46 new collection measures proposed by the PSOE in 2025. 80% of the government’s tax increase measures have fallen on the middle class and SMEs.
Well, we already know that the Treasury, which is emptier than Harvey Weinstein’s office, is going to issue more than €278,448 million of gross debt in 2025, 7.4% higher than in 2024. Much of this will be for refinance maturing debt that will have to be refinanced at higher rates. In terms of net emissions, the Treasury foresees 60,000 million more debt, 5,000 more than initially planned. Although the Government estimates that debt over GDP will drop to 102.5%, that ratio is also disguised with a nominal GDP doped by public spending and inflation. That is to say, the debt rises – a lot – but the ratio moderates. Even so, it is much higher than the one he inherited from the 98.5%. Besides, The total liabilities of public administrations, which is debt that is owed and paid, are much higher. They already reach 2.11 trillion, an increase of 480,000 million since Sánchez arrived.
Pedro Sánchez has plundered the Spanish people and further increases the public debt. That debt is going to cost more and is always paid with less growth, less real wages and lower productivity. The failure of the management is evident: the ratios are only disguised because we have more public spending and more inflation than the eurozone average.
What the opposition has to do is end the plunder, eliminate Pedro Sánchez’s tax increases and cut political spending.