Mariano Rajoy en Bilbao. Imagen tomada por Iker Parriza (Photo credit: Wikipedia)This week, the president of the Spanish Government, Mr Rajoy, was forced out in defense of his economic program. The fiscal adjustment measures, have generated a wave of protests within Spain. Trade Unions and students have begun to protest.Cuts in government spending will affect most of the sectors within this country. The "golden" years left behind and now we have to start paying the bills. The most serious is all this enormous effort is aimed at reducing the government deficit to 5.5% of GDP. What? Yes, that is. All the reforms being implemented by the Spanish government as well as cuts in public expenditure, allow to reduce the deficit in half.
Then, in the next few months, will have to implement new spending cuts to lower the deficit to 2% of GDP by 2013. Implement these measures in a country where the unemployment of young people is over 45% is like handling a time bomb.
But Mr. Rajoy was faced with a problem arising in some of its European partners. Italian Prime Minister blame Spain for increased rates of Italian bonds and the Head of the European Central Bank expressed its concern over Spain. Mr. Rajoy asked "prudence" to European leaders and expressed his conviction that Spain was taking the right steps to save its economy and thinking of its European partners.
For many analysts, the situation of Spain is much worse than that faced Greece two years ago..Continue to read
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