Antich proposes tax rises on incomes over 100,000 euros

This is one of several measures announced by Antich that aim to reduce local government expenditure by 103 million euros between now and 2013. Others are: the elimination of the Departments of Labour and Agriculture and Fisheries; reducing the salaries of politicians and public workers; suppressing investments not yet processed; reducing public companies, containing expenses in certain areas and through subsidies.

The Balearic Government also proposes to increase income from taxes to between 25 and 30 million euros via measures which include raising the tax on sales of property over 450,000 euros from 7% to 8%; introducing a sliding scale on inheritance tax, starting at 1% on legacies of up to 600,000 euros in value and rising to 20% on those over 3 million euros; introducing an environmental tax to be paid by large companies whose activities have repercussions on the environment; and "intensifying" efforts against fiscal fraud.

All these measures, which would have to be agreed with the opposition before being approved, would bring in between 25 and 30 million euros.

Cutbacks in councillor numbers and wages

In order to reduce government spending, the number of regional departments is to be cut from twelve to ten with Agriculture and Fisheries being taken over by the President's Office, under Albert Moragues, and Labour joining Tourism, with Joana Barceló at the helm. There will also be a 50% cut in the number of public bodies, the current 169 being reduced to 82 by the elimination of 5 and mergers of 106.

In an effort to save 2.8 million euros between this year and next, local politicians will have their salaries cut; the President of the Island Council, Marc Pons, dropping 9% from 65,077 euros to 59,220. Other councillors will find their pay packets the lighter by between 4.5% and 8%. In addition, political groups will have their allowances cut by 15%; wages of personnel at the Island Council will be cut by between 0.56% and 7%; financial aid to business organisations and unions will be reduced by 15%; and there will be a 15% reduction in PR expenses.

According to members of the opposition, their wages have been cut by 26.61% whilst those in the governing body have only seen a decrease of 7.43%.

Workers in the local Councils and public companies will also be affected by the austere measures aimed at saving 300,000 euros during this year and next. Many civil servants will see a 5% reduction in their June wage packet and their bosses will be hit harder. An unpopular measure which has led to demonstrations being held in Maó in protest over the wage cuts.