El blog de Maria

The Government approved on last Friday, the 27th, the draft bill on sustainable economy, which was founded with the intention of establishing an evolution pattern towards a new production model.

Sustainable seems to be the most "politically correct" adjective these days, a kind of magic word which almost transforms in approvable all which contains it. Beware... my instinct says!

It seems that the draft suffer from much lack of definition, as it has been commented by the press media.

Among all the packages, that of housing seem to be the most concrete. No other option really.

Some measures:

-    Rebate of 10% on rehabilitation works carried out in homes to improve energy efficiency, water consumption or accessibility.  Entering into force 1st of January 2011.

-    Maintains deduction on the purchase of main residence for taxpayers with taxable income lower than 17,707 euros and graduates relief up to the 24,107 euros. Above that cap, the deduction disappears from January 2011. The tax treatment of those who bought housing before 31st of December 2010 will be respected.

-    To boost the rental market, as crucial to mobilize the massive stock of vacant houses, it equates the tax treatment in respect of rental deduction to the deduction for housing investment. The housing tenant may deduct 10.05% of rent payments up to 9040 per year if he/she has an income below 17,707 euros entering into force 1st of January 2011.

The drfat is a total resignation to the regulation of the finantial sector: who will bell the cat? The draft just establishes some regulations to improve the oversight of the financial sector by requiring listed companies to report the individualized remuneration of its executives. The shareholders' meeting must approve these remunerations as part of their agendas.  Bank of Spain will oversee remunerations of banks and saving banks.

What about liabilities related to financiation? Just that would have be enough to balance the system and place some sustain into the market. Come on! Let´s get right to the point: we have already lose all the available time.
 

Another initiative to improve the economic environment is to control delinquencies. The government is committed to reduce the period of payment of bills from 60 to 30 days in 2013, requiring greater control of payments for the Local Councils. For the private sector imposes a maximum period of 60 days.
 
The new law will be launched in summer 2010. It seems it is coming to celabrate something. I do hope the party will not be cancelled and we all can attend!

Maria L. de Castro

www.costaluzlawyers.es

 
Autumn in Asturias by Luciti at Flickr.com