| The Spanish Inspectorate of Labor and Social Security | | | | income, and mostly from Latin America, Eastern |
| launched an investigation into the black economy in | | | | Europe and Africa, has been expanding the black |
| early summer, and concluded that there has been a | | | | sector in recent years but the loss of tax revenue is |
| huge increase as a result of rising taxation and job | | | | of growing concern as Spain's budget deficit heads |
| losses in the official economy. | | | | towards 10% of GDP. |
| Reports suggest the inspectorate looks set to raise | | | | Speaking at a press conference, the Minister of the |
| more than EUR300m in fines, well in excess of last | | | | Economy and Finance, Inmaculada García, admitted |
| year's record EUR292m. With back taxes and social | | | | that Prime Minister José Luis Rodríguez Zapatero |
| security contributions included, the Spanish government | | | | was concerned about the reports of the rise in the |
| has since 2005 collected EUR27bn from workers | | | | black economy and said that it was another negative |
| failing to declare income from the black economy. | | | | consequence, alongside rising unemployment and tax |
| The main sectors involved were the entertainment, | | | | increases, of the economic crisis. |
| hotel and catering trades, agriculture, and construction. | | | | The number of illegal immigrants with undeclared |
| The figures would tend to confirm World Bank | | | | income, and mostly from Latin America, Eastern |
| estimates in 2007 that the black economy in Spain | | | | Europe and Africa, has been expanding the black |
| could be more than 25% of GDP – as much as an | | | | sector in recent years but the loss of tax revenue is |
| annual EUR250bn. | | | | of growing concern as Spain's budget deficit heads |
| The number of illegal immigrants with undeclared | | | | towards 10% of GDP. |