By Jason Webb
MADRID, Sept 27 (Reuters) - Spain's conservative opposition launched a ferocious attack on the government's tax-boosting 2010 budget bill on Sunday, in a first taste of what promises to be a rough ride for the bill through parliament.
'You bunch of useless idiots, you're ruining Spain!' was the verdict of Popular Party economics spokesman Cristobal Montoro, summing up budget measures including a 2 percentage-point increase in value-added tax.
The Socialist government, which with 169 seats lacks a majority in the 350-seat majority, needs support from other parties to pass the budget, which aims at cutting the fiscal deficit to 8.1 percent of gross domestic product.
This year's shortfall is expected by analysts to near 10 percent.
But, with the Popular Party calling for taxes to be cut not increased and small left-wing parties saying the budget will require lower-income earners to make too much of a fiscal effort, the government's hopes seem likely to focus on Basque nationalists.
At a mass rally on Sunday at which thousands of sympathisers stood in the shape of a giant Basque flag, Basque Nationalist Party leader Inigo Urkullo indicated he would trade approval for the budget for fiscal benefits for his region, already one of Spain's richest.
'If we are going to negotiate, we'll negotiate. If it's possible to do a deal, we'll do a deal. But we will keep our word,' said Urkullu.
Spain's Economy Minister Elena Salgado has said she is willing to talk about Basque demands, which have angered other Spanish regions, but that it won't be easy to meet them.
Failure to obtain approval for the budget, which Salgado will take to parliament on Tuesday, would plunge Spain into a political crisis and test debt markets' confidence in the country's ability to keep its promise to bring its budget deficit back to the 3 percent of GDP limit stipulated by European rules by 2012.
Zapatero will personally take part in negotiations with other parties to try to obtain support for the bill, but the government's publicly-expressed hopes of finding quick support from small left-wing parties seem to have been in vain.
Cayo Lara, leader of one key party, United Left, told reporters proposed tax increases were 'unjust and unfair'.
Left-leaning commentators in Spain have called for increased taxes on the rich, including taxes on special investment vehicles, known as SICAV, which allow their owners to avoid paying capital gains tax.
(Editing by David Holmes) Keywords: SPAIN BUDGET/ (jason.webb@thomsonreuters.com; +34 91 585 83 28; Reuters Messaging: jason.webb.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
MADRID, Sept 27 (Reuters) - Spain's conservative opposition launched a ferocious attack on the government's tax-boosting 2010 budget bill on Sunday, in a first taste of what promises to be a rough ride for the bill through parliament.
'You bunch of useless idiots, you're ruining Spain!' was the verdict of Popular Party economics spokesman Cristobal Montoro, summing up budget measures including a 2 percentage-point increase in value-added tax.
The Socialist government, which with 169 seats lacks a majority in the 350-seat majority, needs support from other parties to pass the budget, which aims at cutting the fiscal deficit to 8.1 percent of gross domestic product.
This year's shortfall is expected by analysts to near 10 percent.
But, with the Popular Party calling for taxes to be cut not increased and small left-wing parties saying the budget will require lower-income earners to make too much of a fiscal effort, the government's hopes seem likely to focus on Basque nationalists.
At a mass rally on Sunday at which thousands of sympathisers stood in the shape of a giant Basque flag, Basque Nationalist Party leader Inigo Urkullo indicated he would trade approval for the budget for fiscal benefits for his region, already one of Spain's richest.
'If we are going to negotiate, we'll negotiate. If it's possible to do a deal, we'll do a deal. But we will keep our word,' said Urkullu.
Spain's Economy Minister Elena Salgado has said she is willing to talk about Basque demands, which have angered other Spanish regions, but that it won't be easy to meet them.
Failure to obtain approval for the budget, which Salgado will take to parliament on Tuesday, would plunge Spain into a political crisis and test debt markets' confidence in the country's ability to keep its promise to bring its budget deficit back to the 3 percent of GDP limit stipulated by European rules by 2012.
Zapatero will personally take part in negotiations with other parties to try to obtain support for the bill, but the government's publicly-expressed hopes of finding quick support from small left-wing parties seem to have been in vain.
Cayo Lara, leader of one key party, United Left, told reporters proposed tax increases were 'unjust and unfair'.
Left-leaning commentators in Spain have called for increased taxes on the rich, including taxes on special investment vehicles, known as SICAV, which allow their owners to avoid paying capital gains tax.
(Editing by David Holmes) Keywords: SPAIN BUDGET/ (jason.webb@thomsonreuters.com; +34 91 585 83 28; Reuters Messaging: jason.webb.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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