This week they have celebrated the 40th Anniversary of the Constitution and little, as is healthy, the ten years that have passed since Spain officially entered the crisis. The fourth quarter of 2008 ended with a recession of 1.1% in GDP and massive job destruction. Since then, the country has gone back flight leaving many people on the road and deteriorating the purchasing power of workers.
Ten years ago, a worker in Spain earned an average of 21,883 euros per
year. In 2016, the last year for which the National Institute of
Statistics (I.N. E) has official figures, this figure has increased to
23,156 euros, which is equivalent to a 5% growth in the last decade,
since in the last two years the wages have remained practically frozen.
The
tiny increase in wages has caused a considerable decline in the
purchasing power of workers. While wages rose by 5%, the shopping basket
was up by 10%, water by 25% and electricity by 33%, according to
official data from the National Institute of Statistics. Water and
electricity have risen five times more than wages since the crisis broke
out in Spain. According to experts, the rise in wholesale prices of
electricity explained by a host of factors, including the increase in
the prices of fuels used for electricity generation (gas and coal), high
costs of CO2 emissions and low wind generation, cheaper technology.
Besides these factors, Spaniards pay 21% VAT on their electricity bill,
the general rate, a rate much higher than that paid by consumers in
countries such as Greece (13%), Italy (10%) or Luxembourg. (8%), According
to data provided by the European Commission regarding the VAT rates
applied in the different countries, it exceeds the average of the euro
area by over three points, which stands at around 17.7%.
It must
also borne in mind that, in reality, the weight of this tax on the
electricity bill of families is even higher, since it applies to the
total bill which includes, besides the cost of consumption or power
contracted, another levy, the special tax on electricity, with a rate
higher than 5%: that is, a tax paid on another tax. They apply this rate
of 21 in our country since 2012, when Cristobal Monitor’s team raised
the general tax rate from 18%.
The Government of Pedro Sanchez has
rejected at the moment to lower the VAT of the electricity so it does
not increase the use of the “most polluting products”. It must also be borne in mind that, in reality, the weight of this tax on the electricity bill of families is even higher , since it is applied to the total bill, which includes, in addition to the cost of consumption or power contracted, another levy, the special tax on electricity, with a rate higher than 5%: that is, a tax is paid on another tax.
This rate of 21% is applied in our country since 2012, when Cristobal Monitor's team raised the general tax rate from 18%. The Government of Pedro Sanchez has rejected at the moment to lower the VAT of the electricity so that it does not increase the use of the "most polluting products".
