Brussels Urges Spain to Raise VAT and End Hotel and Restaurant Breaks

• The European Commission says Spain should raise more revenue through VAT and environmental taxes instead of relying so much on labor taxes.
• Brussels specifically urges Spain to review reduced VAT rates, especially the 10% rate for hotels and restaurants.
• It argues that these reduced rates are costly for the budget and have little redistributive effect.
• The Commission also warns Spain could breach spending limits in 2026, though it broadly supports its fiscal plan.
• It also recommends measures on housing, productivity, bureaucracy reduction, the power grid, and child poverty.

Source: 20minutos.es

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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