Austerity measures “suicidal” for Spain

UGT chief Candido Mendez and CCOO’s Ignacio Fernandez Toxo with King Juan Carlos
UGT chief Candido Mendez (right) and CCOO’s Ignacio Fernandez Toxo (left) with King Juan Carlos

Amid tax increases and public spending cuts union leaders in Spain have told King Juan Carlos that they are opposed to an international bailout and that the austerity measures introduced by Mariano Rajoy’s government are “suicidal” for the country.

Prime minister Rajoy admitted last week that Spain may have to request further assistance from the ECB but that it would depend on the conditions. Spain has already requested 100 billion euros to prop up the banking sector which is drowning under billions in bad property loans.

Following an hour-long meeting with the monarch on Tuesday, a statement issued by the General Workers Union and the Workers Commission said they are generally opposed to any further financial aid as the conditions would likely push the country further into recession and increase pressure on already struggling Spaniards who are suffering from two years of spending cuts and tax increases as the government attempts to reduce it’s budget deficit.

The statement also said that the public spending cuts and labor reforms already enacted were “suicidal for our country (and) were putting a brake on possible economic recovery and job creation.”

Since Rajoy’s remarks last Friday, pressure on Spain has eased slightly and the 10-year bond yield was at 6.7% on Tuesday.

King Juan Carlos has been in the news himself recently following his expulsion from the World Wildlife Fund last month. He had held the position of Honorary President for 30 years but was voted out after photographs of his hunting trip to Botswana showed the monarch posing, with a shotgun, next to a dead elephant.

No official comment has been made by the royal palace following the meeting.

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2 thoughts on “Austerity measures “suicidal” for Spain

  1. DQ

    LET THE DAMN BAD BANKS FAIL! No bailout! Start over with pesetas and let the euro die a quick death!

    The bailout is just a way to move massive amounts of money in front of our very eyes — it’s never meant to help the people of Spain — only a few elite wealthy thieves!

    Any country with a Central Bank has gotten themselves eventually, into a deep hole. Central Bankers are nothing more than thieves who suck the life out of a country — it happened in the USA, and it’s happening here. This is no coincidence. It’s all planned. This is no conspiracy theory — it’s reality.

    The people need to wake up, remove the politicians who are worthless (all of them) and start fresh. No more euro!!!

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