Case study Discriminatory budget cuts in Spain A 2012 study conducted by the Center for Economic and Social Rights analysed Spain’s austerity policies from a human rights perspective. Income data showed that a quarter of the population and almost a third of all children were at risk of poverty and social exclusion. There were also vast regional differences. In May 2012, Spain approved the largest budget cuts in its democratic history, totaling €27.3 billion. The rationale was to reduce the public deficit. However, experts warned that these cuts came at the expense of the accessibility and sustainability of basic social services. According to widespread misperception, the financial crisis in Spain was thought to be caused by overspending. In fact, Spain was among the lowest spenders in Europe on social protection, health and education. Spain had a large shadow economy, which caused a significant loss of revenue. Spain’s union of tax inspectors calculated that if Spain were to bring the size of its shadow economy in line with European Union standards, it would be able to generate €38 billion, exceeding the total budget cuts for 2012. Researchers concluded that by focusing almost exclusively on public expenditure cuts, people were being deprived of their fundamental social and economic rights. And without considering alternatives for shrinking the deficit, Spain failed to meet its obligations under the Covenant on Economic, Social and Cultural Rights. 47