U.S. Markets

Spain's economy minister rules out tax hikes while recovery still fragile

FILE PHOTO: Spanish Economy Minister Nadia Calvino is welcomed by German Finance Minister Olaf Scholz (not pictured) at the Informal Meeting of Ministers for Economics and Financial Affairs in Berlin, Germany, September 11, 2020. REUTERS/Hannibal Hanschke/Pool/File Photo

MADRID (Reuters) - Spanish Economy Minister Nadia Calvino on Friday ruled out any tax increases in the immediate future, saying the priority now was to stimulate the economy and boost job creation after the impact of the COVID-19 pandemic.

Budget Minister Maria Jesus Montero said earlier this week the government was considering raising corporate and wealth taxes, but she didn’t say when.

“All institutions coincide (in the opinion that) it’s not the time to raise taxes until we have a clear and strong recovery,” Calvino told reporters after a meeting with her European Union counterparts.

Current expansive fiscal and monetary policies are set to speed up the recovery from the pandemic-induced crisis, she said, adding that in her opinion the EU-wide limit on public deficits should remain suspended in 2022.

Reporting by Inti Landauro;, editing by Andrei Khalip