Spain and Italy are both in tax-cutting mode this week, the former more convincingly than the latter. By the time you've climbed to the top of the greasy pole, you've probably had to shed most of your principles (if you ever had any) as "not wanted on voyage," and in any case you can only go as fast as your party and the economy you inherited will allow you.
Despite his rhetoric, Mariano Rajoy certainly didn't have much opportunity to display any right-wing anti-tax credentials during his first turbulent months in office, when it was a question of preventing the ship from sinking. Now perhaps things are a bit different, and Rajoy's announcement of job-enhancing social security cuts may have a real impact on the economy, especially since restrictive employment protection laws have been loosened to some extent. Read More »