Rajoy Pledges to Cut Taxes by 2015, Predicting Growth for Spain

Prime Minister Mariano Rajoy pledged to cut taxes in Spain before the next election, due in 2015, as he forecast a return to growth for the euro area’s fourth-largest economy.

“I’m not satisfied in any way with the results we’ve achieved,” Rajoy told a meeting of party officials in Salamanca, Spain, today. “In this legislature we’ll cut taxes. In this legislature there will be economic growth and job creation.”

The premier is battling to sustain the morale of his People’s Party, which has been battered in opinion polls and suffered internal strains over the allocation of spending cuts. The economy is in the sixth year of a slump and unemployment won’t fall below 25 percent until 2016, according to government forecasts.

“We have set our course,” Rajoy said. “Until there is growth and we start to create jobs, we can’t stop.”

Support for the People’s Party declined in May to 22.5 percent from 24.5 percent a month earlier with the Socialists, the largest opposition party, at 20.2 percent, according to a Metroscopia poll for El Pais newspaper.

To contact the reporters on this story: Ben Sills in Madrid at bsills@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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