Spain has suffered a massive increase in its national debt; according to figures released yesterday, the country has a deficit of over 60 billion euros.
That is in itself a large figure, but when compared to last year’s figure of €14.5 billion euros it is an unprecedented upward leap accounting for 5.7% of GDP.
According to Carlos Ocaña, Spain’s, Secretary of State for Finance, there is already a light at the end of the tunnel, and although income will continue to drop through the end of year, and into the beginning of next, it will be slowing down.
This continued increase could spark increases in taxes, in order to slow down the leak in the country’s financial boat.
There are a multitude of reasons why Spain’s deficit has increased at such a rapid rate, including a drop in national revenue from all kinds of sources, like motor manufacturing, and tourism.
Accompanying this has been an increase in spending as more people become unemployed and various bailout schemes have had to be put in place are draining the country’s bank balance.