Spanish labor not taking to those new austerity measures too well
posted at 6:06 pm on July 11, 2012 by Erika Johnsen
Spain’s recent financial and economic woes in the midst of the wider eurozone crisis require that they make some tough decisions about where and how they’re going to rein in their budget problems. The government announced more planned austerity measures on Wednesday morning, which they hope will cut their budget deficit by $80 billion through 2015 — even while they estimate that the eurozone’s fourth-largest economy is more likely to contract than grow for the next several years.
In an impassioned address to parliament, Mr. Rajoy called on all Spaniards to back the measures, which include a value-added tax hike to 21% from 18% and cuts to jobless benefits and public sector wages, saying Spain’s economic situation is “extraordinarily serious.” …
The austerity steps build up on previous cuts that have already led to an income-tax hike as well as steep budget reductions for all ministries. They also come as Spanish officials are separately negotiating detailed conditions for the EU’s bank bailout that may force Madrid to give up most of the control over its banks to European institutions, and impose losses on holders of banks’ subordinated debt. …
The new measures also include a cut in jobless benefits for new claimants, a significant step in a country where unemployment represents almost 25% of the workforce, and a salary cut of around 7% for central government employees. The measures also seek €3.5 billion in savings linked to public services provided by local governments. …
Since Mr. Rajoy’s conservative Popular Party has a strong majority in parliament, he isn’t expected to find significant challenges in getting the measures approved. … Recent polls have shown that austerity is having only a moderate negative effect on Mr. Rajoy and his conservative party.
Spain is indeed in dire straits (25 percent unemployment is certainly nothing to sneeze at!), and economic contraction is going to mean very real material hardship for many. Per that last paragraph, it seems like the Spanish are generally taking the tough news pretty well — they’re not yet running amok calling to elect more socialists into office like a certain snooty neighbor of theirs. But, we saw how many of Greece’s public employees and labor-union workers reacted to the reality that there was no more recourse for free-money entitlement handouts, and it’s a sentiment that apparently spans national boundaries.
As the miners marched down the city’s main boulevards, chanting, waving banners, brandishing sticks and setting off fire crackers amid clouds of thick smoke, they were confronted by riot police.
Some threw and bottles at the police who were trying to contain them. Volleys of rubber bullets were fired into the crowds in response, with dozens of protestors led away in handcuffs, some with blood streaming down their faces. More than 20 people were injured, including police officers, demonstrators and onlookers. …
Gathering outside the Ministry of Industry later, amid placards emblazoned with slogans against the cuts and the ruling conservative Popular Party government, Carlos Marcos, 41, a miner since the age of 18, warned: “If they don’t pay attention to us, we’ll be back – with dynamite.”
…Yikes. This is undeniably going to be a hard time for Spain, and will only continue to be so while other European countries keep skirting austerity and spending money like drunken sailors, but it would only be worse if they continued to put off the inevitable — and the rioters can be sure to thank big-government, central-planning, entitlement-crazed socialistic policies when they get a chance.
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I wonder if Obama is envious?
pat on May 15, 2013 at 9:25 PM
Obama can offer some tips on how to jump start a country..
No..
Seriously..
Electrongod on May 15, 2013 at 9:25 PM
Maybe it is time to look at the Socialist Ideology behind their economic policies…?
Seven Percent Solution on May 15, 2013 at 9:26 PM
Guess I’d better get rid of those euros that I have left from my trip to Ireland in March, eh?
Bob's Kid on May 15, 2013 at 9:26 PM
BREAKING:
Other People’s money runs out; EU in decline.
BobMbx on May 15, 2013 at 9:27 PM
I wonder if Obama knows.
Well, it is on the news so there’s a chance.
BobMbx on May 15, 2013 at 9:28 PM
Huh, maybe someone should’ve warned them or something.
squint on May 15, 2013 at 9:33 PM
As Maggie Thatcher was wont to say, “Sooner or later they run out of other peoples money.”
Screw the EU…
Scrumpy on May 15, 2013 at 9:36 PM
…JugEars:like everything else…”I first learned about this…from news reports…like everybody else!”
KOOLAID2 on May 15, 2013 at 9:41 PM
Once upon a time, America had an economy strong enough to lead the world out of recessions.
Then, Progressives came along and America changed.
MTF on May 15, 2013 at 9:46 PM
Hmmmm…..seems all that “free stuff” in the EU wasn’t “free” after all.
Is Barry taking notes?
GarandFan on May 15, 2013 at 9:48 PM
You know it is time for personal intervention when you are reading about economics and politics on HA while the tornado sirens are blaring outside.
Limerick on May 15, 2013 at 9:49 PM
This isn’t good for North America, either.
rickv404 on May 15, 2013 at 9:50 PM
They need a real federal system like we have in the US. That way, the left can screw around until Mercedes looks like GM and Germany goes the way of Michigan.
Then they blame the Swiss or British investors and bankers.
They don’t have our racism but with a little imagination they can whip up a decent copy in reliving wars or soccer games which didn’t work out like they wanted. Ok, it is lame but their version of a Harley sounds like a sewing machine, anyway.
IlikedAUH2O on May 15, 2013 at 9:59 PM
The only way for the Euroweenies to get out of these awful economic doldrums is to raise taxes.
SparkPlug on May 15, 2013 at 9:59 PM
Downward spiral? Wait till they hit Barock bottom.
SparkPlug on May 15, 2013 at 10:00 PM
Green shoots!!
ThePrimordialOrderedPair on May 15, 2013 at 10:02 PM
I find this bit of “news” interesting because there was never much popular support for the EU. They had to stop holding referenda for their retarded Constitution because it went down in flames the few times it was tried (so they then snuck it in by calling it the Lisbon TREATY, instead … and as a TREATY it didn’t need a plebiscite … yup).
Maybe support has dipped even further but the EU was never able to withstand any popular vote. Heck, in Britain they made a sport of intentionally not letting anyone vote on anything about it.
All that said, Eurotrash is just doing what Eurotrash does … killing themselves and destroying everything within arm’s length of them. They’ve been pulling this destructive suicidal junk for almost a century, now.
Let us not forget that Barky was always a bigger hit in Europe than he ever was, here. Heck, the biggest political rally (possibly in history) was Barky’s illegal, un-Constitutional, un-American and offensive Berlin rally for Germans. Barky never should have been allowed to return to the US after that. The Eurotrash loved him … they should have been forced to keep the retard.
ThePrimordialOrderedPair on May 15, 2013 at 10:07 PM
Can I buy Spain yet on Ebay?
Capitalist Hog on May 15, 2013 at 10:11 PM
How long before they change the EU to eewwww?
socalcon on May 15, 2013 at 11:00 PM
Just as a technical reminder – European GDP estimates are not annualized, so if one wants to compare it to what the BEA puts out there, multiply by 4 to get a close-enough-for-government-work approximation. That makes the overall rate -0.8%, and Germany’s rate +0.4%, on an annualized basis.
As for the continued German support for the pEU, they must be thinking that Brussels is once again in Greater Germany.
Steve Eggleston on May 15, 2013 at 11:26 PM
S&H is going to kill you.
trigon on May 15, 2013 at 11:47 PM
Totally agreed!!
jimver on May 16, 2013 at 2:10 AM
If we had accurate data, instead of politically massaged propaganda, we would see Europe is not alone.
dogsoldier on May 16, 2013 at 8:02 AM
Not yet. But I wouldn’t say it’s impossible that we’ll see such a thing in our lifetimes.
We’re getting a front-row seat at the final stages of what happens to nations that subscribe to some moronic liberal sing-around-the-campfire version of international unity, with a generous dose of economic socialism used in the recipe.
MelonCollie on May 16, 2013 at 8:14 AM