Spain has decided the only way to tackle its budget deficit is via extremely sharp expense cuts coupled with a more modest move to increase taxes. Prime Minister Mariano Rajoy says his government will reduce spending by 65 billion euros over two years. That is an extraordinary number, given the size of the nation’s economy and the need for social services to support the 25% of the working age population that is unemployed.
Rajoy also will ask parliament to increase the nation’s VAT from 18% to 21%. That will put a tremendous strain on consumer, and later business, spending. It will drive the people in Spain who can afford to consume and lift the economy to reconsider what they buy and pay.
Douglas A. McIntyre
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
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