Spain - The future

Interesting article and proposal.. Spain does have many problems, and the interesting highlight is the public sector..

"The EAE Business School has carried out a survey titled "El coste de la Administraci?n P?blica en Espa?a" ("The cost of the Spanish Public Administration"). According to this survey, from 2000 to 2008 in the European Union, the percentage of growth of total public expenditure per civil servant was 36.2%, in Germany it was 17.7% and in Spain it was 58.7%... Public administration seems to exist completely separate from the economic crisis. While unemployment increased by 1,280,300 persons in 2008, the number of civil servants increased by 116,200 people."

And lets not even mention the amount of corruption that exists in that sector. With the new proposal to join the municipals, there is room for greater disparity (and corruption) in the allocation of funds and people aren?t happy.

Breaking up the euro into MED and NORMAL EURO is suicide for Spain, with a much larger economy than Greece and Portugal I doubt that it would be a good idea to group with them in a single currency. Would the market really care for this MED currency with all the risks? It?s like grouping all the bad apples into one big rotten barrel, and the semi good one on top is left to follow the rot. Really I think the solution is to either break up the Euro completely, a chance for each country to fend for themselves, or hold on for dear life. At least some grannies and nuns still have pesetas stashed away for the "if" event :)

Hi Gretina,

You make a good point about grouping all the bad apples into one big rotten barrel. So here is another question. If you put five bad banks together does it make one good one (especially in the short term)??

And just to be a little controversial. Youth unemployment at 45%. Do you see any groups of youths hanging around on street corners in the middle of the day? So could it be that some may be finding other things to do, like working on the Black?

For the guys and girls who are in genuine difficults, I truly hope that Europe will start implementing some growth policies to increase employment for you.

Ironically there is already a case of grouping bad debt together to make a better credit rated product (cough... subprime mortgages USA.. cough, crikey it?s a crisis!) And BankInter is doing just that - grouping all the bad cajas together to make a super caja listed on the stock exchange, ready to fail (with a chance of survival since some nominee shareholders are buying under priced... cough China cough..).

All the unemployed are either working in black or studying at an INEM institution until they find a job or are at the Tomatina festival :)

There is a "You Need Spain" campaign, trying to market the brand out using footballers and the El Bulli chef guy, but all targeting China. So something is happening, although I?m not in favour of such a slogan... sounds kinda desperate!

:) You are so correct.

Where the spain i know from the 80s/90s ? , been young out partying buyying a beer for 100 pesetas are less , yes it very good read , i see friends off my loss jobs here wich happen all over the EU and the world , Times are getting bad and will go to back to day people will have money under the bed again , the banks wont help any one out , politicians are embarrassed to admit the scale of the problem, or are afraid of losing voters. But Moia is a reflection of what is happening across the country. while us real people know about it , wage cut after wage cut , next i been payying two work ....
time to do what >?

http://www.elpais.com/articulo/english/Global/indignation/elpepueng/20111016elpeng_4/Ten

and a response from former president Jose Maria Aznar...

"...Meanwhile, former Prime Minister Jos? Mar?a Aznar of the opposition Popular Party (PP) described the 15-M demonstrators as "no more than a poor anti-establishment movement that is linked to groups on the extreme left."

"Their representation isn't important to Spanish society," the former prime minister was quoted as saying in an interview with the Ecuadorian daily El Universo on Sunday.

Is he that misguided? The whole world is turning to ratsh*t and this arrogant little P.P. weasel has the effrontery to suggest that these people 'are of no concern'. His is the voice behind Rajoy, the guiding hand, the former leader of a far right party that was deposed immediately after the Madrid bombings.

The sad thing is of course that the P.P. will almost certainly win the next election and the reason that they will win has nothing to do with their popularity... it's to do with the unpopularity of the PSOE. Just as the double act of Cameron / Clegg winning of the last UK election had nothing to do with their popularity and was all about the unpopularity of Labour. We have all seen what happens as a result of these knee-jerk elections. If you think things are bad in Spain now, just wait and see; they can and will get worse just as they have in the UK.

Its high time that former leaders of any country were permanently gagged and put out to pasture; they all cause problems that they can walk away from both in and out of office. They are like babies diapers, so full of sh*t they need to be quietly disposed of. Thatcher, Blair and Brown are prime examples from the UK; Blair is still at it, mouthing off at every opportunity just as Aznar is over here.

For Aznar to suggest that "Their representation isn't important to Spanish society," and "no more than a poor anti-establishment movement that is linked to groups on the extreme left" is dangerous to say the least and shows just how out of touch he really is; these protests were mounted by people from all walks of life, students, lecturers, white and blue collar workers, public service workers, housewives, pensioners.

I have some news for you Mr. Aznar... These people ARE Spanish society. Society isn't the protected elite and that is what they are trying to tell you.

I have been living in Spain almost 1 year now (from New Zealand and also lived in London 5 years) and for me Spain is never really going to improve until people change their attitudes, way of life, way of thinking etc. It's something hard to put into words... something I have just observed since being here. My wife is Spanish and also agrees since living overseas. Spanish don't seem to have the go out and get it attitude.

I love Spain and Spanish people don't get me wrong... I just think it's going to take more the government policy and austerity measures to right the problems in Spain.

And also please start opening shops and supermarkets on Sunday! Were not living in the 1900s any more. There is definitely a market for it (when they are open on Sundays they are full of people). Even a simple idea like this could create jobs...

Hello Toro:

I really don't think one can generalize. I have lived, and worked, here practically all my life (I am Irish), my husband is Spanish, and well, there are all kinds. I know many very ambitious, hard-working and forward-thinking people. Professionals who have made considerable discoveries, inventions, etc., writers, artists, musicians, the list is long. Spain itself is very diverse, and every single person, and region, in it is different. Maybe some people do not WANT to be go out and get it types.

Every nation, every country is different, and IMHO I would not presume to change a people's attitude, way of life, culture, or thinking, no more than I would like them to try to change that of my country.

Er, the shops and supermarkets, shopping centres DO open on Sundays, maybe not absolutely all of them but very many do. In Spain, thankfully, there are still many family-run businesses, so I suppose they do need, like the rest of us, one day of rest per week.

Personally, I think it is a bit much to think of "improving" a country after being here one year. In all the yers I have lived here it never crossed my mind to think of telling them what to do. LOL.
I have never been to New Zealand but I hear the lifestyle there is fairly laid-back too!

All the best
Patricia

Hi Patricia,

First of all I'm not trying to improve anyone or tell them what to do. Just giving my opinion.

And that's obvious that there are many hard working ambitious people here, I think you will find people like that in every country in the world.

I think you pointed out my point perfectly "Maybe some people do not WANT to be go out and get it types. "

Too many Spanish are just sitting back waiting for something to happen.. I'm not talking about going out and starting an empire or working as an executive. But yes you have to want to go out and get something in life... big or small .
Maybe your goal is too not be living at home with your parents until you are in your 30s, which is very common here... obviously a lot have to, but also a lot choose to... which is again a different way of thinking... better or worse is up to you...

I got my job here, over more than 200 Spanish. When I asked my boss why.. he said I was the only one who showed any interest, calling, going out of my way to show I wanted the job.

My Sports team is a mixture of people all around the world... and the Spanish people in the team are amazed at how we have come here and found jobs in this situation... most say they would never dream of doing anything similar

I have a few friends from the UK who worked in office jobs back home and become unemployed... so decided to fly over to Mallorca and walked boat to boat for more that a week to find a job. I could not imagine someone from Madrid who worked in an office, packing up/changing career and moving to Mallorca to take a risk like that.

Well I'm yet to find a supermarket that is open 7 days a week here...pls let me know any chains that do.

As I said I think Spanish are wonderful people... and as long as I have work here I won't be leaving =)

Hello again Toro:

Re the open supermarkets, etc. You will find that the OpenCor supermarkets (offshoot of Hipercor) and also Hipercors do open on Sundays, for example. Personally I believe rampant consumerism is at fault for much of the present woes, so I am not a great believer in the absolute of Sunday opening, and there are far more interesting things to do than traipsing around a mall on Sundays. Just my opinion.

Toro, people don't HAVE to do anything. Culture and ways of looking at life is a complex issue.
And, as you get a bit older you tend to get a bit more tolerant!

As for living at home with the parents, well I think most people would prefer not to. Many have to, and in many cases it makes sense, particularly in these times, where having, for example two offspring away from home, with a mortgage each, plus the mortgage on the home place, would be a considerable drain.

I wasn't making your point for you. What I mean is that not everyone is cut out (educationally, emotionally or even physically), for the get out there and do it stuff. It is of course up to each one.

I cannot imagine that if I became employed from any job flying to Mallorca to go boat from boat seeking work. My take on it would be stay at home and look for another job there. I can of course see the attractions of preferring a sunny island, and a job on the water.

It isn't all black and white in life. The office worker in say Madrid, who loses his or her job may have a whole raft of other issues to take into consideration before flying to Iceland or Aberdeen to work on a fishing vessel (just an example). The person may have a family member to look after, someone infirm/elderly, may not even have enough to get to Aberdeen or Iceland to tough it out until the job comes up. They may well want to take the risk, the Spanish have emigrated in very large numbers in the past (to Germany, Belgium, France), and are not shy of hard work. Many of those emigrants returned to Spain eventually and set up a business here to give their offpsring a better life.

The husband of a friend of mine works two jobs, one of which is night-time. I do not know how he manages on so little sleep. He is not the exception.

Good luck with your own job.

All the best
Patricia

Hi all,
I actually see Toro's point being a bit more pertinent to the current state of the economy than the credit Campana/Patricia is giving it. It's easy to be defensive of the Spanish lifestyle that we all adore so much, but much harder to think about how to eat our cake too ? the sense of entitlement, the voices of protest, are all just a little bit hypocritical (just a little bit!) given the attitude exemplified by some very visible Spaniards towards accountability to their work or schedules. Claro, there are a ton of (if not the vast majority) really hard working Spaniards too, some unbelievably so, but there are plenty who are happy to measure their lives' successes by how little work they can manage without getting fired (the zombies). And sometimes they've frustrated the hell out of me (talk to Telefonica on the phone recently?)!

So yeah, you're both right. But in light of the protests and economic turmoil Spain is currently in, we have to realize that recovery will come on the backs of the zombies and the corrupt - and there are lots of them!

Well, it all remains to be seen, as always.
I don't think I gave any credit to the state of the economy, Expatriator. The economy is in a rather dreary state in most places, Spain being no exception.
I don't adore the lifestyle in Spain at all. For me it was never a holiday destination, I don't like hot sun or lying around on a sunbed doing nothing. In fact I always made a point of getting out of Spain for the mid-Summer months.
I like being in Spain, and I equally like being in my own country. If I had to go to some other country, that would be fine by me too. Life is what you make it.
I am a realist. I have worked with, and for, Spanish people. I am well aware that at times the bureaucracy can be frustrating. I have been in the country a very long time.
Of course, there are the visible Spanish politicans (I don't think much of politicans anywhere, anyhow LOL), but in that case say so, say "Spanish politicians). Don't lump everything under "Spaniards". You get the time-keepers (the zombies) everywhere. As you say, Expatriator, there are a vast majority of hard-working, and likely frustrated, Spanish people.
The majority of my friends are Spanish, and among them I don't know one who doesn't complain about their politicians.

I have had no occasion to talk to Telefonica recently, in reality I never had any problem with them. I have had Movistar for as long as I can remember. Maybe my attitude is good! Who knows.

What gets to me is the constant "sniping and griping" so prevalent on "expat forums". Some of the stuff is not just bordering on racism but is IMO racism. Where do some of these career complainers come from I ask! And where do they think they are? In a time-warp, back in the times of the Raj, maybe!!

Time to wind up for the night now.

All the best to everyone.
Patricia


I actually see Toro?s point being a bit more pertinent to the current state of the economy than the credit Campana/Patricia is giving it. It?s easy to be defensive of the Spanish lifestyle that we all adore so much, but much harder to think about how to eat our cake too ? the sense of entitlement, the voices of protest, are all just a little bit hypocritical (just a little bit!) given the attitude exemplified by some very visible Spaniards towards accountability to their work or schedules. Claro, there are a ton of (if not the vast majority) really hard working Spaniards too, some unbelievably so, but there are plenty who are happy to measure their lives? successes by how little work they can manage without getting fired (the zombies). And sometimes they?ve frustrated the hell out of me (talk to Telefonica on the phone recently?)!

So yeah, you?re both right. But in light of the protests and economic turmoil Spain is currently in, we have to realize that recovery will come on the backs of the zombies and the corrupt - and there are lots of them!

Yeah, we're lucky we have some fairly constructive people around here Patricia.

I'm afraid the times are indeed difficult though, so no surprise there is plenty of finger pointing and griping!

Have a good one!

I agree, Expatriator, that there are truly constructive and level-headed people on here.

Yes, times are difficult, and liable to get more difficult I fear.

All the best
Patricia

Hi Toro07:
Not sure where you?re based. But if you?re in Madrid, they?ve changed the law to allow shops to open on Sunday in the city centre. More and more are doing that. El Cortes Ingl?s is opened the first Sunday of each month. The one near Sol is open every Sunday. And that?s also why the "chinos" are profiting from the Sundays, they?re mainly here to fill the gap.

The issues in Spain are much deeper, and high on the top are the ethical problems. My husband (Spanish) also mentioned that a lot of the split in society is from the civil war where the same people who served Franco are still in the current government and just look at the state of the judicial system! Garz?n suspended as judge, but Franscisco Camps pronounced innocent for corruption? The King?s son-in-law not even investigated for corruption? Hardly independent at all. This country needs to change from the top, but probably it?ll have to be the bottom who need to bring down the top as history had it (Anarchists).

The rest is just cultural, whilst I agree sometimes a little proactivity and perhaps change of attitude goes a long way, the state of this crisis is just horrendous. Another problem is that this generation (unfortunately mine), were overprotected from parents who built this country from the war, so they just became a bit over-reliant and less independent. If you speak to more Spaniards, you?ll realise there?s so many little perks in their culture that just stops them from being efficient. In the past, many of that generation emmigrated as well to look for work. I was surprised at how many grandfathers went over to Sydney to work on the Harbour Bridge and engineering boom in those times!!

George Orwell nicely put these issues in Homage to Catalonia - great book if you like to know more about the Spanish character! Now I just laugh them all off as "ahh that?s just Spanish". As they insist "Spain is different". We can?t force our logic on them and expect them to accept it. Being in their country, we have to accept their ways, frustrating as it may be! At least that puts us in an advantage in things such as Job placements. ;) Should count yourself luckily employed! When they realise this, they?ll come around. In time, ma?ana ma?ana vamos a la playa!

Good news (well not sure if it?s good), there?s a lot of emmigration of the youths now, so maybe they can bring back their experiences and improve this country. It?s really up to them, not us (well maybe China) :)

PS. Coming to Spain makes me feel lucky to have come from Oz! Ah well. You always think the grass is greener!

Superb post Campana !!!


> Well, it all remains to be seen, as always.
I don't think I gave any credit to the state of the economy, Expatriator. The economy is in a rather dreary state in most places, Spain being no exception.
I don't adore the lifestyle in Spain at all. For me it was never a holiday destination, I don't like hot sun or lying around on a sunbed doing nothing. In fact I always made a point of getting out of Spain for the mid-Summer months.
I like being in Spain, and I equally like being in my own country. If I had to go to some other country, that would be fine by me too. Life is what you make it.
I am a realist. I have worked with, and for, Spanish people. I am well aware that at times the bureaucracy can be frustrating. I have been in the country a very long time.
Of course, there are the visible Spanish politicans (I don't think much of politicans anywhere, anyhow LOL), but in that case say so, say "Spanish politicians). Don't lump everything under "Spaniards". You get the time-keepers (the zombies) everywhere. As you say, Expatriator, there are a vast majority of hard-working, and likely frustrated, Spanish people.
The majority of my friends are Spanish, and among them I don't know one who doesn't complain about their politicians.

I have had no occasion to talk to Telefonica recently, in reality I never had any problem with them. I have had Movistar for as long as I can remember. Maybe my attitude is good! Who knows.

What gets to me is the constant "sniping and griping" so prevalent on "expat forums". Some of the stuff is not just bordering on racism but is IMO racism. Where do some of these career complainers come from I ask! And where do they think they are? In a time-warp, back in the times of the Raj, maybe!!

Time to wind up for the night now.

All the best to everyone.
Patricia


I actually see Toro?s point being a bit more pertinent to the current state of the economy than the credit Campana/Patricia is giving it. It?s easy to be defensive of the Spanish lifestyle that we all adore so much, but much harder to think about how to eat our cake too ? the sense of entitlement, the voices of protest, are all just a little bit hypocritical (just a little bit!) given the attitude exemplified by some very visible Spaniards towards accountability to their work or schedules. Claro, there are a ton of (if not the vast majority) really hard working Spaniards too, some unbelievably so, but there are plenty who are happy to measure their lives? successes by how little work they can manage without getting fired (the zombies). And sometimes they?ve frustrated the hell out of me (talk to Telefonica on the phone recently?)!

So yeah, you?re both right. But in light of the protests and economic turmoil Spain is currently in, we have to realize that recovery will come on the backs of the zombies and the corrupt - and there are lots of them!

Hello there Andrea007. It's been a while since we've seen you on here.

Thank you for the kind words. Always appreciated. Btw "elsewhere" today there is a post that I feel you ought to look at. It certainly made my day!! LOL.

All the best
Patricia

will want to know whats happen to the loacl town hall money ... Peleas de Abojo is know as Spain most indebed town Report the bbc , http://www.bbc.co.uk/news/world-europe-17347698
240 live there and debts are 4.6Million euros are 3.9million Sgt , some party there

Couple of links from El Pais in English demonstrating just how bad the situation is for Spain's young people

http://elpais.com/elpais/2012/03/11/inenglish/1331494804_093749.html

http://elpais.com/elpais/2012/03/12/inenglish/1331575980_208983.html

Desperate times indeed...

fb

'I am no expert', but to outline a few things a friend from the UK (who does take a great interest in matters economic and social there and here...)...
She feels the economy/situation here is going to get far worse before it gets better.
For example - The hike in interest on national loans (from 3% to 6% due to the poor credit rating of those Spanish bonds)... is going to hit hard in all areas, especially public services.

In the UK she has already seen the NHS becoming a two tiered system (for those who can afford private and those who cannot not.)

Etc, etc.

She does not know where it will end/if there is light at the end of the tunnel.
She is even predicting it will get as bad as Greece here...

PS - She is a lawyer. (Not an economist, but a lawyer who specializes in social issues.)
I guess she must know what she is talking about.

(Sorry for the very vague details here, but it is way over my head. I just want to know if I am going to be OK to stay in Spain as it is my home. We have already been hit financially by the rise in utilities prices and lack of work.. but manage to survive - just!)

Hi Susan,

No question Spain faces a very tough 12 - 18 months.

Still, there will always be Rhonda, Granada etc to keep us going !!

Cheers,

Andrea

Hello there Susan and Andrea 007.

I believe the country is in for a difficult time. Well, some will have a more difficult time than others, and that is how it is everywhere.

I don't think anyone knows where it will all end, Susan. Perhaps this state of ongoing upheaval will lead to a more level-heade and aware society.

No one can tell the future. So I suppose all one ca do is make the best decision, prepare oneself, listen to one's instinct.
Often if we force a solution on a perceived problem we merely make the matter worse.
Many people have to emigrate in order to find work. And perhaps in these uncertain times it is no bad idea to use this time study for a qualification in some other area, where it will then be more likely one can get a job.

Just a few thoughts.
Patricia

Thanks Patricia. Not sure what I could re-train in... but will give it a thought.
For now we are expanding our 'Home Grown' Veggie small business.
Seems that no matter how tight things are, people want good, fresh veg (and organic - which we are 90% able to produce.)
Likewise, keeping an eye and an ear open for any new news that might affect us on the general national situation.

I hear tourism to Spain is keeping steady. But with the high debts and seasonal nature of the beast, know it will only keep a few
above water for a little longer.

What a state to be in!

Susan,

Any student of history will appreciate that Spain has suffered many defaults & crises over the past 500 years - BUT ALWAYS emerged the other end !!

Therefore, there is hope despite the obvious severe difficulties that lie ahead.

Cheers,

Andrea

I was reading that the TEFL industry is still going, due to the fact people are encouraged to get jobs elsewhere?

I work with unemployed people and have countered a fair few Spanish and Portuguese people seeking work in London (many of who actually speak no English at all, which must be hard for them).

Do people think this industry will last?

What if Greece pulls out of the Euro? Will that screw up other economies?

> Susan,

Any student of history will appreciate that Spain has suffered many defaults & crises over the past 500 years - BUT ALWAYS emerged the other end !!

Therefore, there is hope despite the obvious severe difficulties that lie ahead.

Cheers,

Andrea

I was a student of History.
And yes, Spain has always emerged from a crisis, but in most cases it has taken a very long time, with much hardship along the way.
Not meaning to put a damper on your remark, but these are difficult times and things will get much worse before they get better.

And Sel,
The TEFL industry does appear to be holding its own in Major cities and, in fact, if I was thinking of moving to Spain today, that is the only industry I would think worth taking a look at.
But the question has to be asked, how many Spaniards can afford English classes? And are those who teach them willing to lower their fees enough (and thus up their teaching hours to compensate) to make this work?

No question Spain faces a challenging period i.e. leading economists are now predicting housing could fall a further 35% & general unemployment will scale 30% (lets hope they are wrong !!).

Regardless, recovery WILL eventually come perhaps in 4 or 8 years - who knows ?

Cheers,

Andrea

Andrea[/quote]
I was a student of History.
And yes, Spain has always emerged from a crisis, but in most cases it has taken a very long time, with much hardship along the way.
Not meaning to put a damper on your remark, but these are difficult times and things will get much worse before they get better.

Ain't that a fact, Andrea07.

"Regardless, recovery WILL eventually come perhaps in 4 or 8 years - who knows ?"

Of course recovery will come, but not tomorrow or some Sunday of next month. Things are rough at the moment, choppy waters indeed.

There has to be no activity more futile than "futurising". What will happen? There is no telling. Perhaps a new world order.

People spent, spent, spent. I wanna have it, an I wanna have it now. Burn the plastic, the credit card machines smoking.
Well, we are seeing the results.

Those who took some kind of care during those mad years will weather the storm.

Patricia

Thanks Campana.

The reality is that people have little choice but to survive & pull through - despite the very severe hardships.

What no one disputes is that better days WILL eventually return.

Cheers,

Andrea

Spain's wealthiest autonomous region, Catalonia, needs financing help
from the central government because it is running out of options for
refinancing debt this year, Catalan President Artur Mas said today.
Catalonia is running out of options for refinancing debt this year
Catalonia is running out of options for refinancing debt this year

"We don't care how they do it, but we need to make payments at the end
of the month. Your economy can't recover if you can't pay your bills,"
Mr Mas told a group of reporters from foreign media.

The debt burden of Spain's 17 highly devolved regions, and rising bad
loans at the country's banks, are both at the heart of the euro zone
debt crisis because investors are concerned they could strain finances
so much that Spain, the currency bloc's fourth biggest economy, will
need an international bailout.

Catalonia, which represents one fifth of the Spanish economy, has more
than ?13 billion in debt to refinance this year, as well as its
deficit.

All of the regions together have ?36 billion euros to refinance this
year, as well as an authorised deficit of ?15 billion.

Last year many of the regions financed debt by falling months or even
years behind in payments to providers such as street cleaners and
hospital equipment suppliers.

This year the central government provided them with a special credit
facility from the Official Credit Institute, or ICO, to pay providers,
of which Catalonia has taken ?2 billion.

The provider credit lines from the ICO run out in June and the central
government has pledged to come up with a new mechanism for backing
debt from the regions, which have been mostly priced out of
international debt markets since the Greek rescue in 2010.

Catalonia's Mas, from the centre-right Convergence and Union Party,
said he is running out of options.

In the past two years Catalonia has placed patriot bonds, at 4.5% to
5.0%, but he says the capacity for the people of the region to buy
such bonds is at its limit.

A quarter of all Catalan savings are already in patriot bonds, he said.

The other option would be short-term financing from banks, but
Catalonia's neighbour, the region of Valencia, recently paid 7% for a
six-month loan, a level seen as unsustainable.

Catalonia's annual interest payments have already doubled in the last
two years, to ?2 billion this year.

Mr Mas said the central government should issue so-called Hispanobonos
to help out the regions, priced at the average interest rate that the
regions would have to pay for debt from other sources.

Government sources have told Reuters that Economy Minister Luis de
Guindos and Treasury Minister Cristobal Montoro disagree on the final
form of the mechanism to back regional debt.

S&P credit rating agency cut Catalan debt by four notches on May 4,
putting it at BBB-, just one notch above junk grade.

Fitch has graded Catalan debt a couple notches higher, at BBB+.

Catalonia's deficit was supposed to be cut last year to 1.3% of gross
domestic product, but the regional government overshot that by close
to three times.

This year it is struggling to reach a deficit target of 1.5% of its
economic output, a goal many economists see as impossible given that
the Spanish economy is set to shrink this year by about 1.5%.

Catalonia has cut public sector wages, instituted a tourism tax and a
1 euro charge to fill each medical prescription, applied the maximum
surcharge on gasoline and frozen infrastructure investments to try to
get the budget under control.

"El ministro de finanzas alem?n, Wolfgang Sch?uble, ha aclarado que "no son los bancos, sino Espa?a, quien recibe el dinero", explicando de este modo el procedimiento que tendr? la ayuda comunitaria a este pa?s. "Ahora el pa?s tendr? que negociar su reestructuraci?n bancaria con el FMI y el BCE", a?adi?.

"Espa?a hizo muchas reformas y est? en el buen camino", considera Sch?uble, que respalda a Luis de Guindos al afirmar que no se trata de un "rescate de un pa?s", argument?ndolo al asegurar que Espa?a no se introduce, como tal, en el fondo de salvamento."

El Ejecutivo comunitario se muestra convencido de que Espa?a podr? "recuperar gradualmente la confianza de los inversores y de los mercados y crear las condiciones para recuperar el crecimiento sostenible y la creaci?n de empleo" gracias a la "profunda estructuraci?n" del sector bancario combinada con las reformas estructurales en marcha y la consolidaci?n fiscal. "


Excerpts from:

http://www.eleconomista.es/espana/noticias/4031557/06/12/Espana-va-pedir-el-rescate-para-sanear-sus-bancos-y-el-Eurogrupo-lo-aceptara-segun-Afp.html