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More Austerity Coming to Spain

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Posted on Dec 31, 2011
Contando Estrelas (CC-BY)

Newly elected Spanish Prime Minister Mariano Rajoy is rumored to be holding back some unpopular austerity measures until the end of March, after regional elections in Andalusia.

Spain announced a package of spending cuts and tax increases Friday after the new government said the budget shortfall is deeper than the outgoing administration had led it to believe. Meaningful structural reforms have yet to be proposed, and the full extent of the cuts is unlikely to be made known until after regional elections in late March. —ARK

The Guardian:

The principal measure comes in the form of an €8.9bn budget cut spread across all government departments. There are also across-the-board income tax increases and for home-owners, a one-year freeze on public sector salaries, a freeze on the minimum wage of €641.40 a month and cuts in subsidies to trade unions and political parties. Pensions, as promised, will rise by 1% next month, and the cut-off point for unemployment benefit is to be extended for a further six months.

… Income tax on salaries of €9,500 will rise 0.75% and by up to 7% on incomes above €300,000.

… Amid all the austerity, there were no measures that appeared to be designed to boost productivity or dent Spain’s crippling 23% unemployment rate. Indeed, the spending cuts seem certain to lead to job losses. [Vice President] Sáenz de Santamaría, who gave birth to her first child six weeks ago, also announced the suspension of plans to extend paternity leave to one month until 2013.

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By gerard, December 31, 2011 at 6:50 pm Link to this comment

Robespierre:  I see this uncertainty about goals as a natural result of our (you and I) having let things
go so far down the drain that there are too many accumulated and tangled problems, too complex to find the “best” place to take hold and exert unified energy.  That, plus the long period of difficulties
that result from lack of accurate information (ie. media obfuscation) and resulting lack of access to
centers of power.  Pile on top of that, lack of unity about how to proceed, plus heavy doses of fear and manic depression, and the result (not-surprisingly) is masses of people who don’t know what to do first or how to come together.  Skills necessary to democratic government have deliberately been perverted. There won’t be, and can’t be any quick solutions.  It is even difficult to decide where to begin, and agencies holding power at the top seem determined to do no more than hang onto the status quo—and even use force to prevent invention and change. Until OWS came on the scene, there was almost no basic communal spirit left in us.  Yet alone we can do little to nothing. It’s going to take a long time, and a lot of patience and wisdom.

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By berniem, December 31, 2011 at 12:49 pm Link to this comment

Why are the people never given information until after the next election? I guess it’s to prevent the consideration of alternatives unpallatable to the kleptocrats. FREE BRADLEY MANNING!!!!

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Robespierre115's avatar

By Robespierre115, December 31, 2011 at 12:29 pm Link to this comment

A lesson in a way for the Occupy movement. The Indignados in Spain spent weeks “occupying” plazas, but they offered no ideas, no alternatives, they kept promoting this vague idea of “there’s no left or right wing,” “we want gentle capitalism,” “we don’t care about politics but want political change” etc., and here’s the result.

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