Spain’s cash transactions have grown to be worth 25% of the country’s output, hitting nearly €253 billion.
As ever, the black economy has rocketed with increasing unemployment, unabated at 26% of the population.
Untaxed cash transactions have deprived the authorities of income, but have kept many families from even greater desperation than they already suffer during Spain’s five years of stop-start recession.
The real estate boom that went sour in 2008 "boosted the black economy and fraud, since many transactions were done in cash with 500 euro notes", said a report by Treasury experts and academics.
Undeclared work is another avenue of support for many families with members not able to find other jobs.
The report also highlights “an increase in cases of political and business corruption”.
"A belief among citizens that the government is making little effort to fight fraud is causing the black economy to grow," the report said.
"A doubt therefore arises as to how much governments want to interfere in the black economy, since millions of people depend on it and fighting it would create great social instability."
