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Spain braces for further cuts amid national uproar
Friday, March 2, 2012 @ 11:52 AM

Spain, whose economy – the fourth largest in the eurozone – is staggering under a burden of debt, is preparing for further austerity measures after its finance minister revealed that the 2011 budget deficit was substantially higher than expected.

­The deficit came to 8.51% of GDP – far higher than the European Commission’s own forecast of 6.5%. Brussels will now effectively dictate the 2012 budget ceiling which Spain will announce on Friday. The country will have to come up with more than 40 billion euros in savings to meet that target. However, most economists say the planned cuts are impossible as the economy is already slipping into recession.

Read more at rt.com



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5 Comments


Christopher Gamble said:
Saturday, March 3, 2012 @ 11:28 AM

Just too many layers upon layers of regional bureaucracy and public sector dominance and corruption. What's need is a root and branch clean up of Spanish politics and government to include total transparency and tracking of EU Funding right down to the last €million. What we are experiencing is the tip of a massive iceberg about to rip the EU apart unless Rajoy has the guts to do what he needs to do about total reform.
Has he got the guts to do it?
From current performance the answer is clearly as 'brown envelopes' passing hands is still the de facto system as far as I am led to understand.


Christopher Gamble said:
Saturday, March 3, 2012 @ 11:34 AM

Just too many layers upon layers of regional bureaucracy and public sector dominance and corruption. What's need is a root and branch clean up of Spanish politics and government to include total transparency and tracking of EU Funding right down to the last €million. What we are experiencing is the tip of a massive iceberg about to rip the EU apart unless Rajoy has the guts to do what he needs to do about total reform.
Has he got the guts to do it?
From current performance the answer is clearly 'Not yet' as 'brown envelopes' passing hands is still the de facto system as far as I am led to understand.


John Hampton said:
Saturday, March 3, 2012 @ 1:07 PM

I know it doesn't help but I think income tax avoidance (not to say evasion) caused problems in Greece, Italy, Portugal & now Spain. But true or not, the first thing I'd do in Spain is reduce the number of Guardia Civil; not the budget (they get that from us). Just add it up: Almost no cars anywhere but a gang of GC on so many roundabouts in always new 4x4s & brand new uniforms, speaking several languages, and if you're stopped you will be fined (for something or other). But when there's a murder or rape.... Something is very wrong and as it's our money, surely we should put it right?


Lynette Rowe said:
Monday, March 5, 2012 @ 4:50 PM

It's not just Tax aviodance, it's the complete incompetence of all the governments national and regional. The only successful country in the EU is Germany, how could country's like Greece, Portugal Spain and Italy complete with the German economy, even France is in a terrible state, even if Sarcossie acts like all is well in France. The money they waste knows no bounds, they show no restraint and waste their country's tax payer's money on the most ridiculous projects.In Spain far to many homes have been built and 1000's will never be sold and already many are falling into a state of dis-repair. Government officals are full of their own importance, most have had no business experience and yet they are the ones who decide how the country's are run. The EU is a never ending money pit and will never work, with poorer country's becoming bankrupt one by one. The EU does not have the manufacturing output to compete with China, India and South America and the West has got into deficit because it's people's want never ending cheap goods and yet export little in return to balance it's books. Millions of people have been over employed in the public sectors, which as we now all know simply cannot be afforded. We no longer have the amount of jobs in the west for the people that live there. The young people of the US and EU sadly have a very bleak future.


Judith Basham said:
Tuesday, March 6, 2012 @ 5:55 PM

When the West decided about 25 yrs ago their citizens were too good to work in factories producing every day needed items and began to guide youth into the higher levels of employment, we lost the plot big time. China and India gladly stepped into those vacant shoes and started producing the cheap goods we now think we cannot live without. Very little duty is levied on goods coming into the EU from China and India - THEY ARE POOR COUNTRIES! It would hurt them. Our youth were told on a regular basis; "you are worth it" and they embraced it wholeheartedly. They graduate from secondary schools with this thought in their heads only to find they cannot cut it in the business world with the level of education they failed to achieve. They also have no self-discipline. Most of all, the EU governments are reluctant to curb over population and when will the penny drop that there are not enough jobs at the PRESENT let alone to sustain the growing population for the FUTURE. Over generous child benefits have corrupted parents into thinking someone else must pay for what I want / need. If someone were to offer me the chance to be 21yrs of age again, I would turn it down without hesitation. I am glad to be on the slippery slopes headed downhill and not the near vertical climb that faces the youth of today. Presidents, Prime Ministers etc have a lot to answer for; that is, when they are not filling out bogus expense claims at our expense.


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