EU ENLARGEMENT IS GOING TO HIT SPANISH FAMILIES IN THE

The figures have emerged from a study carried out by the Partido Popular which was presented yesterday by Economy policy secretary, Miguel Arias Cañete.

According to the Partido Popular, the increase in the number of European states will cost the Union nearly 200'000 million euros.
This is, in part, due to the fact that in the period between 2007 and 2013, Community funds will be distributed differently and Spain will “be the country which suffers most”.

Specifically, Spain stands to lose some 40'000 million euros of funds originally destined to the regions with the least income per capita, that is to say, the so-called Ojective 1 areas.

The regions which will come off worst are Castilla y León which will lose 3'100 million euros; Valencia (2'900); Andalucia (2'000); the Canary Islands (1'800); Galicia (900); Asturias (680); Catalonia (609); Murcia (600); Castilla-La Mancha (550) and Extremadura (500).

The regions least affected will be La Rioja which will lose only 24 million euros; the self-governing Spanish cities of Ceuta and Melilla in North Africa (80); the Balearic Islands (57); Navarra (63); Cantabria (107); Aragon (146); the Basque Country (311) and Madrid (352).

According to Partido Popular calculations, if Spain wants to maintain its investments and abide by the new Community fund distribution, it will have to tax families between a further 400 and 1'000 euros more each year. The European Union is still to debate the final details of how the share-out is to be distributed and funded.

Arias Cañete pointed out that there are two possible proposals for the distribution of funds; one which has been presented by the former Prodi Commission, promoting the tack that the European Union budget be maintained at 1.24 percent of the Community gross product; and that of a Francogerman school of thought, which proposes reducing the percentage to one percent of the gross product.

If Prodi's option is approved, Spanish families would have to pay between 400 and 500 euros more in tax each year to maintain investments; but if the second proposal is adopted, taxation to Spanish families would be increased by double the amount, between 800 and 1'000 euros.

According to Arias Cañete, the Partido Popular is offering “all its collaboration and loyalty” to the central Socialist government in these crucial negotiations on financial perspectives of the European Union.

Although the Partido Popular is in favour of Union enlargment, the new funding share-out is still “a problem of considerable proportions for Spain”.
With this in mind, the Partido Popular parliamentary group will next Wednesday, question central government on what criteria it intends to lay down on the negotiating table in Brussels.

Arias Cañete pointed out that the accord reached in Brussels has to be a unanimous one. Spain has the power of veto if the results are not to its liking.