First it was Italy implementing capital controls and a €300 cash transaction cap, now Spain.
Spanish PM Mariano Rajoy has announced that the Spanish gov’t will implement a hard cash transaction cap in Spain of €2,500.
While not nearly as low a level as Italy’s draconian €300 cap, Spain’s step to implement a cash transaction cap is merely the latest symptom of the metastasis of the European debt crisis.
Expect to see the exact same measures implemented in the UK & the US within the next 3 years.
SD’s acronym for the global debt crisis will catch on yet, count on it.
FUK US PIIGS
Prime Minister Mariano Rajoy said the Spanish government will implement a series of measures to fight tax fraud at a Cabinet meeting on April 13 including limits on the use of cash.
Transactions of more than 2,500 euros that “involve at least one professional entrepreneur” won’t be allowed to be made in cash, Rajoy told Parliament today in the weekly question-and-answer session. Fines of 25 percent of the transaction amount will be handed to those breaking the rule, he said.
The government chose to implement an amnesty on tax evaders, which it expects will raise 2.5 billion euros, as it wanted to avoid increasing taxes, Rajoy said.