Spain's infrastructure minister said on Sunday he thought the country's tax burden was low, and may have to rise to ensure continued investment in public works. On Friday, Spain moved to revive around 500 million euros ($638.1 million) of public works it mothballed under an austerity drive, saying fiscal targets were intact even as its debt-servicing costs relative to Germany neared a four-week high.
In an interview with the Europa Press agency, Jose Blanco said details of any changes in government tax policy would have to wait for publication of its budget proposals for 2011, which are due in the first two weeks of September.
"In relation to the public services (Spain) has and the infrastructure it has and needs to keep developing, it has a very low tax base compared to the average for European countries," Blanco said.
"The question citizens must always ask themselves is if we want first-class public services or infrastructure, we will also have taxes in line with European countries," he added.
Blanco's comments come days after a European Central Bank Executive Board member said Spain would need to make additional budget cuts in 2011.
Analysts have said any revival in infrastructure spending would have to be paltry at best given the government is only just starting to convince financial markets it can stabilise its finances.
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