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Geopolitics

Spanish PM's About-Face On Taxes After Bailout, Miners' March Hits Madrid

BLOOMBERG, EL PAIS, EL MUNDO (Spain)

Worldcrunch

MADRID - Reversing an earlier no-new-taxes pledge, Spanish Prime Minister Mariano Rajoy has announced tax increases and spending cuts totaling 65 billion euros ($80bn) over the next two-and-a-half years to try stave off the accumulating debt crisis, Bloomberg reports.

Rajoy's fourth austerity package in seven months includes a 3% VAT hike – which directly contradicts Rajoy previous promise that he would not raise taxes and has some worried that it could send Spain into a deep recession. But the move comes one day after European officials agreed to a 30 billion-euro bank bailout for Spain, the first instalment of a package worth up to 100 billion euros agreed in June.

"I said I would cut taxes and I'm raising them But the circumstances have changed and I have to adapt to them," the Spanish Prime Minister told Parliament.

The Spanish daily El Pais also reports that the government will reduce the number of city councilors by 30% and block the salaries of mayors.

Meanwhile, El Mundo noted that unemployment benefits will be cut after a six-month unemployment period, adding that employees from the public sector could also bid farewell to their Christmas bonus this year. The Madrid-based daily published an interview with the leader of the Spanish opposition, Alfredo Pérez Rubalcaba, who stated that "Today, Spain is doing worse."

The series of measures come as thousands of Spanish miners from all over the country arrived in Madrid after 20 days of marcha negra, to protest against government cuts to subsidies. The miners, wearing their helmets with the lights turned on, are protesting against a 63% cut in subsidies to coal-mining companies. In northern Spain, demonstrations outside coal mines have already resulted in clashes with police.

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Geopolitics

China's Military Intentions Are Clear — And Arming Taiwan Is The Only Deterrence

China is spending more money on weapons and defense than ever. The reason is evident: Xi Jinping wants to take Taiwan. Europe should follow the U.S. and support Taipei militarily as the only way to deter Beijing from war.

Photo of Military drills in Taiwan amid rising China-U.S. Tensions

Taiwanese soldiers stand guard at a base during a military drill simulating defense operations against a possible Chinese PLA intrusion

Gregor Schwung

-OpEd-

BERLIN — Fear is never the best advisor.

It is, however, an understandable emotion when China announces the biggest increase in its defense budget in memory. And when Beijing does so after siding with Russia in the Ukraine war with its supposed "peace plan" and justifying the increase with an alleged "escalating oppression" of China in the world.

The budget plan unveiled by outgoing Premier Li Keqiang calls for a 7.2% increase in defense spending. That's more than in previous years — and just the official figure.

Experts estimate the true spending is much higher, as Beijing finances its military through numerous shadow budgets.

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