General strike called by Spanish Civil Servants[/b]
By h.b. – May 12, 2010 – 10:36 PM
Domingo Fernandez speaking on Antena Tres, Noticias 2 – Photo A3 video
It is in response to the Government’s plans to impose a 5 percent wage cut from June, and to free wages in 2011 as part of new plans to cut the deficit, announced by the Prime Minister in Congress on Wednesday
Speaking on Antena Tres TV on Wednesday night, Domingo Fernández, president of the CSI_CSIF union, has announced a general strike by civil servants, in response to the announcement in Congress by the Prime Minister earlier in the day that their wages are to be cut by 5% from June.
José Luis Rodríguez Zapatero, listed the move, along with a wage freeze into next year, as part of the new measures from the Government designed to reduce Spain’s debt at the insistence of the European Union.
Speaking on the Noticias 2 programme, Fernández, who is the leader of the main civil servants union, said that ‘there will be a general strike’ in response to the austerity measures although he failed to give a date.
Meanwhile the Prime Minister has already arranged a meeting for Thursday with representatives from the two main unions in Spain, CCOO and UGT. Unions have already criticised the austerity plan and say they have not ruled out demonstrations.
The International Monetary Fund has however applauded the Government’s plans describing them as ‘very good’.
Well, that’s certainly one way of looking at it. An end to the freedom for recidivist states to continually mismanage their economies? That’s how I see it, and BTW it seems to me that Obama had more influence on Zapatero, than the EU.
However, It doesn’t look like an end to independence of prudent financial management, just slapping the naughty boys into line 🙂
I hope that the Spanish government drive through these cuts, I half expect that they will “cave in” to Union protests, and general complaining from the populace. Spain needs to get on with reducing it’s deficit, the Unions going on strike, whilst somewhat understandable, is indefensible.
So, budget cuts & tax hikes, but are the government doing anything to try and develop new lines of revenue. It seems like it would be appropriate to encourage all the unemployed to get a little entrepreneurial, maybe then a percentage on the dole will start contributing to the country instead of languishing in unemployment.
Well, that’s certainly one way of looking at it. An end to the freedom for recidivist states to continually mismanage their economies?
I think that depends on your belief in either the sovereignty of nations, or a homogenised collective. I believe sovereign states should manage their own affairs. Rise and fall by their own behaviour. The EU is like a benevolent parent bailing out a child who runs hopelessly into debt. Never a good idea. Nations should stand on their own two feet. The alternative is loss of identity and permanent dependence.
EMU states have run up huge unsustainable debts because they knew the EU would rescue them. If you are a child of a rich parent and you know they will always bail you out, how do you ever learn financial responsibility?
The entire concept of EMU is flawed because it is a political aspiration and makes no economic sense for so many reasons.
It produces initially a short wave of euphoria and the illusion of prosperity for the smaller states. Then inevitably condemns them to an economic and fiscal regime which can only end in stagnation, decline and civil unrest.
In Spain, Greece and Portugal we now see that legacy in operation.
From everything I read the Spanish political class our not capable of imposing very tough budgetary cuts, in the face of sustained opposition they will cave in. I hope the Spanish State is mature enough to come through a crisis that is only just beginning to dawn on them.
That’s why they waited this long. Several commentators have thought that Zapatero was waiting for th edecision to be taken away from him so that they could make harder cuts and ‘hopefully’ not take a beating a the approaching (regional) elections
From everything I read the Spanish political class our not capable of imposing very tough budgetary cuts, in the face of sustained opposition they will cave in.
Dit
The same situation applies in France who also have huge deficits. That is one reason the markets are not convinced EMU will work in the long term. When the recession is over the status quo will return, EU countries will resume a borrowing binge until the next down turn arrives. Long term it will end in disaster.
What is quite worrying is that most of the western economies are declaring plans to drastically cut their public spending at a time when there is little perceptible signs of a pick up in private sector spending. This all follows on from a big bubble in asset prices and huge problems in the banking sector. There seems to be some remarkable similarities between what is beginning to happen now and what happened in the great depression in the 30s. I just hope that history doesn’t repeat itself.
Writing in Nada es Gratis, Luis Garicano welcomes the Spanish adjustment plan, but says that success is far from guaranteed. He makes four points. The first is that the package actually has to be implemented. This is not clear from the Spanish government’s history of trial balloons. Second is that Spain must now start a programme of structural reforms (which is not part of the package), especially labour market reforms. And third, this is an appeal to the trade unions, do not take this out on the streets as in Greece, or in Venezuela. And finally, the Spanish government, for once, has to explain to the Spanish people how serious the situation really is.
Taken from this mornings Eurointelligence Daily Newsbriefing.
“for once, has to explain to the Spanish people how serious the situation really is.”
In my experience the Spanish are and can be reasonable & at most of the times responsible people. The issues comes that they do not have confidence or trust in the system or that their powers or powers to be, to treat them in a grown up manner This is creates the enviornment of mistrust and self preservation.
The culture of secrecy which still prevails within the Spanish establishment is the source of mistrust in it’s population. It is also taken for granted that public officials are corrupt which creates further suspicion.
Perhaps one benefit of EMU is the government is forced to come clean and admit the truth of it’s economic state. It certainly seems to have worked recently, although I still believe the full extent of the current situation in Spain has yet to be revealed.
Europe’s fiscal fascism condemns Spain to a future debt -deflation spiral:- http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100005678/europes-fiscal-fascism-brings-british-withdrawal-ever-closer/
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