All EOS blogs All Spain blogs  Start your own blog Start your own blog 

Live News From Spain As It Happens

Keep up to date with all the latest news from Spain as it happens. The blog will be updated constantly throughout the day bringing you all the latest stories as they break.

No EU leeway offered on Spain's deficit
Friday, March 2, 2012 @ 11:42 AM

Spain will get no leeway on its budget targets before May, Spanish Economy Minister Luis De Guindos said on Thursday, but Madrid could opt for defiance when it presents the backbone of its 2012 plan on Friday.

Spain has hovered on the fringes of the euro zone crisis as investors worry that its economy, enfeebled by the bursting of a property bubble, puts it at risk of following Greece, Ireland and neighbouring Portugal in seeking a bailout.

Prime Minister Mariano Rajoy, elected last year on a pledge to slash spending, has been lobbying Brussels for leniency, arguing the country's shrinking economy makes it impossible to cut enough this year to achieve a deficit target agreed with Brussels of 4.4 percent of gross domestic product.

Read more at Reuters.com



Like 0




1 Comments


Christopher Gamble said:
Saturday, March 3, 2012 @ 11:49 AM

On the face of it, Spain should simply regard its self as a business. And what would a good business leader do in a crisis?
Simple: They would cut-costs and drive sales in a 'sharp-turnaround' strategy implementation.
The layers and layers of waste in the Spanish political and government system (the legacy of the return to sovereignty following the death of General Franco and the inefficiencies and corruption in the autonomous regional government system) would probably deliver more than the deficit in savings alone!
The only way this can be achieved is through transparency which is a paradigm shift in Spanish management and government culture.
Personally, leniency is a possibility for Spain from the central EU but with strict conditions about transparency and efficiencies.
Essentially the 'RED TAPE' is ANTI-preneurial.
Follow a single Euro and see how it gets lost in the system.
Forced transparency kills corruption (as per the Swedish and New Zealand systems of Government).
Rajoy can hide behind EU dictate and put the blame on them when the change comes and it must come.
The days of 18 hour week, 15 month pay checks and pension schemes as a system to PREVENT BUSINESS SUCCESS and 'brown envelope' planning and public managers staying at home all day are the days of shame for the Spanish public sector.
The main problem is the Regional Government structure has too many layer upon layers = WASTE.
So the conditions of EU leniency must be total Governmental REFORM on a massive scale!

Only registered users can comment on this blog post. Please Sign In or Register now.




 

This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x