Consumers will be happy to note that certain public services will be lowering or maintining their current price levels during 1997, any rises will be minimal. Electricity rates will drop by an average 3 per cent and urban phone rates remain unchanged.

Fiscal changes are as follows:

1. National Insurance contributions for employees drops by 2.6%

2. There are to be four price rates for Income Tax declarations for the year 1997 - presented in 1998 - as opposed to two at present a) individual b) joint c) state d) autonomous region. Tax returns will become very complex despite rates being reduced to ten scales.

3. The Income Tax on family declarations rises 2.6%

4. Some public services rise by 8% such as postal rates.

5. The special tax on beer rises 2.6%

6. The catastral (official) values of property rise by 2.6%

7. A 4% tax is being introduced on risk insurance premiums - including car insurance.

8. Companies that invoice below 250 million pesetas will pay 30% of Incorporation Tax on the first 15 million pesetas of profit.

9. A reduction of 15% in taxes on Net Profit for small companies paying via the "Module" System. The benefits of these last two steps taken by the government will be seen in the 1997 tax declarations, which will be presented half way through 1998.

10. The civil servants salaries are frozen for 1997. This step has aroused great worry and upset between the Trade Unions and the Spanish Officials. However, the pensions rise 2.6%

11. The bases of quotation regarding Social Security rises 2.6%

12. Central Bank Interest rates have dropped to 6% resulting in banks reducing their interest rates for loans and mortgages. Notary and Land Registary fees are reduced by 50% for people cancelling mortgages with one bank because another is offering better conditions.

13. Spain´s inflation rate for 1996 was at its lowest in recent history, even below the forecast 3.5%. The government ´s target for this year ias 2.6% which is why they have frozen certain utlilty prices. Spain fully intends meeting the criteria of Maastricht for joining the European Monetary System.