Spain’s finance minister, Arcadi España, has called for a more rational debate on taxation, arguing that discussions should address not only how much people pay but also the public services funded by those taxes. He made the remarks during a conversation with EL PAÍS deputy editor Miguel Jiménez at the World in Progress forum in Barcelona.
Speaking ahead of an electoral campaign in which the People’s Party has announced major tax cuts, España said that any such proposals should explain how spending would be reduced. He said the Socialist Party’s fiscal programme would focus on maintaining the welfare state, supporting businesses and applying a rational approach to taxation.
España argued that anyone who supports a welfare state must accept the need for taxes to fund services such as policing and education. He also distinguished between the tax burden itself, the management of public resources and the principle of progressive taxation. According to the minister, Spain’s tax burden is lower than that of countries including Germany, France and Italy.
The minister acknowledged that part of the public dissatisfaction stems from concerns about the efficiency of public spending and the perception that economic growth does not always translate into higher household incomes. His response is to advocate “more Europe”, including deeper coordination within the single market of more than 400 million people.
España also called for the European Commission to provide common public goods in areas such as security and defence, supported by a common budget proportionate to those needs. At the same time, he recognised growing fatigue with the European project because of bureaucracy and attacks from the global far right.
He defended harmonised European tax measures, stronger action against fraud and efforts to ensure that large fortunes are taxed where they should be. España said rising inequality and the growing influence of some individuals had exceeded the ability of individual states to exercise control, reinforcing the need to work towards a basic minimum level of taxation worldwide.
Sources: El País Internacional.