Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Spain's Social Democracy Under Economic Pressure

Politics / Euro-Zone Oct 08, 2010 - 05:52 AM GMT

By: Pravda

Politics

The general strike on September 29 against the labor reform decided by the government of José Luis Rodríguez Zapatero is the opening of a probably hectic social season. The government has promised to submit a new bill to Congress before the end of the year intended to increase from 65 to 67 the legal age of retirement and extend the period of computation for determining the amount of the pension, from the previous 15 years of work into the last 20 ...


In addition to labor reform and the decree last May that lowered the wages of civil servants, froze pensions and cut public works spending, this project increases the wrath of the unions and many of the workers.

Beforehand, the President presented his government's decision as irrevocable: "The day after the general strike," he boasted in Tokyo on September 1, he continued with the same attitude. "This encourages unions to provide new and additional days of protest."

In its intransigence, the Spanish government is modeled after other European governments. In France, despite three recent mass protests against pension reform, President Nicolas Sarkozy has reiterated that he will not change the law. In Greece, six general strikes in six months have been ignored by Prime Minister George Papandreou.

Relying on the principle that in a democracy, policy is decided in Parliament and not in the street, these leaders ignore the distress of large social groups to resort to strikes or street demonstrations, expressions of social democracy to reflect specific complaints.

(1). Acting in this way, these governments make mistakes. They behave as if the electoral legitimacy was being imposed on other forms of legitimacy and representation, and in particular about the legitimacy of social democracy.

(2). In any case, this inflexible attitude may encourage the discontented masses, in a second stage, to reject social dialogue and seek confrontational clashes. Above all that, since last May with the announcement of a brutal adjustment plan, the disgust of an important part of Spanish society has not stopped being exacerbated.

(3). Among the nearly five million unemployed, precarious workers, unemployed youth, women wage earners, small officials and families...with of all of them lies the conviction that they have been sacrificed by those in charge.

At the same time, through the bank-rescue fund, the government transferred to the banks and savings institutions (responsible for the housing bubble) up to 90 billion euros ... Not looking to significantly increase the taxation of higher incomes, or create a tax on large fortunes, or reduce defense budgets (about 8,000 million euros per year) or the financing of the Catholic Church (about 6,000 million euros) , or even the budget of the royal family (almost 9 million euros) ...

What upsets many citizens is the assurance that the government has taken such regressive measures against the wage earners because of the European Union and the International Monetary Fund. And under pressure from financial markets, under threat of not investing, they demand lower wages and lower living standards. In fact, it was admitted to a group of Japanese investors by President Zapatero: "We are dealing with," he confessed, "reforms that mostly concern international investors."

(4). And before the senior management of major investment banks and investment funds in the United States they reiterated that such measures were taken "so that the investors and markets value the firm determination that I have to make the Spanish economy be competitive."

(5). The labor reform has no relation to cutting the budget deficit and the reduction of state budgets, the major requirements of the financial market . But since the government cannot devalue the currency to stimulate exports, they decided to favor the collapse of wages in order to become more competitive.

The worst thing is that these very unwise measures have few guarantees of success. The unemployment data registered in August, with the reform already in place, shows that 93.4% of the realized contracts were temporary ... In other words, insecurity continues to dominate the labor market. The only difference is that now, the dismissal turns out to be cheaper for the businesses.

After the crisis in the 1990s, unemployment took thirteen years to be reduced to the average European level, in a time when the growth rate was very strong and Spain received massive European structural funds. Today, with this labor reform and a long-term forecast of stunted growth, "employment in Spain, according to U.S. economist Carmen Reinhart, will not recover to the 2007 levels until ... 2017."

(6). Meanwhile, rejected by its own constituents, this government will have probably lost the power and direction of the country and ceded it to the conservative and populist opposition. It is usually what happens, it is what we saw in Germany, the UK and more recently in Sweden, where leftist parties deny themselves and they unashamedly choose right-wing politics.

Notes:
(1) The democratic vote, precisely because they are general and universal, does not always allow the expression of particular sensitivities.
(2) Read Rosenvallon Pierre, "Le pouvoir contre l'intérêt général", Le Monde, Paris, September 21, 2010.
(3) According to a recent survey by the Centre of Sociological Investigations (CIS), the PSOE lost 3.1 points. Only 2.5% of respondents said that the economic situation is good or very good, compared to 22.6% who consider regular and 74.4%, which is defined as poor or very poor.
(4) El Pais, Madrid, September 1, 2010.
(5) Ibid, September 21, 2010.
(6) Ibid, September 12, 2010.

Translated from the Spanish version by:

Lisa Karpova

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in