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Palma.— Joan Gual de Torrella, the President of the Majorcan Chamber of Commerce has written to Balearic President, José Ramón Bauzá, warning that the Balearic economy could suffer serious damage if it yields to national and international financial pressure being placed on it.

Gual de Torrella said that there is no evidence that measures being taken by Central Government to rein in debt and at the same time create financial growth will be successful as there is no similar comparison to be made in other periods of the country's economic history.

The Chamber of Commerce President highlighted in his letter to Bauzá that there are two main threats to the stability of the regional economy. One is the rise in VAT being proposed by Central Government despite fierce opposition from leading figures in the tourist industry both here in Spain and in key client countries, and the other is the increase in airport taxes which the Spanish Airports Authority claim is essential to cut down its huge deficit. Gual de Torrella said that “most people in the Balearics” appear to be aware of what havoc these two measures could wreak on the region's chances for economic growth but the politicians imposing them seem to be ignoring the fact.

He concluded in the letter to Bauzá that all the leading businesses in the Balearics would stand shoulder to shoulder behind their President to help find a way out of the crisis but “it is essential that he (Bauzá) takes a stand against Central Government to stop them increasing taxes to a degree which will destroy the economy.”