Rajoy upbeat on economy in state of nation debate

Spanish Prime Minister Mariano Rajoy on Tuesday delivered an upbeat address as he spoke to Congress on the first day of the Spanish state of the nation debate. The prime minister, whose government will be up for reelection in 2015, promised to next year do away with income tax for people earning less than 12,000 euros (16,500 US dollars) a year, while giving positive news over predictions for Spain's GDP. "The forecast is that we will reach growth of 1 percent in 2014 and 1.5 percent in 2015," he said, stressing that was an improvement on previous predictions of 0.7 percent growth. Rajoy expected to see increased foreign investment in Spain, adding that the increased growth would also have a positive effect on the country's crippling rate of 26 percent unemployment which means over one in four Spaniards are out of work. At a time where corruption is making headline news nearly every day in Spain, with both the youngest daughter of King Juan Carlos Infanta Cristina and his ruling Popular Party involved in important cases, Rajoy insisted the PP would fight corruption. He reiterated his call for a banking union in the European Union, a question that has been high on his agenda for a long time. "This government will work towards a fiscal, economic and political union," said Rajoy, who also faces problems of unity in his own country as Catalan nationalists prepare to hold a referendum on the independence of the region on Nov. 9. "This referendum cannot take place, it is not legal," he insisted. "It is the entire Spanish people who have the capacity to decide what Spain is. No one can unilaterally deprive the entire Spanish people of the right to decide on their future," he insisted. The following days will see every party in Spain put forward their views, with opposition groups likely to focus their attacks on the continued level on unemployment, corruption and on social issues such as the recent anti-abortion law, which has provoked angry demonstrations in the country.