Spain to Announce Finance, Tax Measures to Ease Virus Impact

Spain on Thursday will announce financial relief initiatives and a moratorium on tax payments for small- and medium-sized companies to mitigate the economic impact of the coronavirus, Foreign Minister Arancha Gonzalez Laya said.

The government will also take steps to support the tourism industry, she said in an interview on state broadcaster TVE, without providing details. The European Union must follow suit and announce more economic measures to calm markets, she said. Talks on Spain’s budget will need to account for the impact the virus will have on spending, she said.

The European Central Bank is set to unveil its monetary response to the virus later on Thursday as President Christine Lagarde seeks to prevent the outbreak from sparking a repeat of the 2008 financial crisis.

There is no conflict between providing tax relief for SMEs and increasing spending, Gonzalez Laya said.

“We’re not talking about lowering taxes; what we’re talking about is moratoriums and delays on taxes in order not to drown companies that are experiencing difficulties,” Gonzalez Laya said. “We need to be intelligent to respond in the short-term with necessary measures.”

Schools in Madrid and other parts of Spain have closed down and people are being encouraged to work from home as the country attempts to contain the spread of the virus, which has now affected more than 2,000 people and killed 50.

To contact the reporter on this story:
Charlie Devereux in Madrid at cdevereux3@bloomberg.net

To contact the editors responsible for this story:
Dale Crofts at dcrofts@bloomberg.net

Ross Larsen

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