Every day I get emails from a friend Bran who lives in Spain. Today Bran writes ...



Hello Mish



The big news here today is with government accounts. GDP is lower than expected, and revenue are down way more than expected (down 16.2% compared with a predicted drop of 12.8%).



Therefore, the government is looking at another few billion in borrowing this year and its schedule of deficit targets is thrown out of line.



Spain's budget is already tight after spending cuts and salary reductions, so the article suggests higher taxes might be need to get back on target.



All the best, Bran.

The deficit compromises growth objectives for 2012 through 2014.

Staff reductions are increasingly difficult.

Spain is in a very problematic situation.

Personal income taxes are down 19.4%

Corporate incomes taxes are down 42.7%

VAT collection is down 22.4%

Excise duties are down 40%

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Spain 10-Year Government Bond Yield

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