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STAFF REPORTER PALMA

THE Socialist Balearic government appealed yesterday to opposition parties to show “responsibility and sense” over approval of the regional budgets for next year.

Tax and Economy Minister, Carles Manera, and the “Bloc” coalition Parliamentary spokesman, Gabriel Barcelo said that if the opposition Partido Popular (PP) and the Majorcan Unionists (UM) were not able to reach agreement with the Socialists, then they should come up with some “viable alternatives.” Manera and Barcelo were speaking yesterday after the government had put the finishing touches to its 2011 regional budget. As his Socialist party is governing in a minority, Balearic President Francesc Antich is shortly due to meet with opposition parties to persuade them to back the proposals.

If no consensus can be reached, the already-approved budget for this year will be extended into 2011.
Although the Socialists will be launching into the negotiations with a “positive” spirit, it is certain that the budget for next year includes a hike in income tax for the most wealthy and an environmental tax, measures which the opposition are unlikely to welcome. But Manera has insisted that the tax increase will be “progressive” and will not affect middle class income and certainly not those who have even less earnings. “It's a falsehood that consumer spending will be fall if the tax is raised,” said Manera, because only a small section of society is going to be affected and those are the highest earners.

The projected budget for 2011 envisages a spend of 3'200 million euros, a downturn of 5.4 percent in comparision with figures for this year. The government says it is prioritising social services, education and health.