Note that the Spanish government, besides facing pressure from the troika, is expected to obey the dictates of the OECD, a leading globalizing think tank. "Currently, unemployment stands at a record 27.2 percent, with 6.2 million people out of work. The youth unemployment rate reached a record 57.2 percent. ... "The austerity measures imposed so far have not satisfied the ruling elite. The Bank of Spain’s annual report said, “The achievements of the labour reform in respect of internal flexibility and wage constraint are encouraging, but the results obtained in fomenting new hires are still not sufficient”. The Organisation for Economic Cooperation and Development has called for further “reforms”, including abolishing the widespread practice of compensating workers for a loss of spending power as a result of inflation, an arrangement known as indexation. The Bank of Spain agrees with this recommendation, adding that steps must be taken to ensure indexation is not re-introduced when the economy begins to grow again. ... "The document is completely in line with demands included in the Bank of Spain’s report to bring forward the increase in the retirement age to 67 (currently planned for 2027) and cutting pension payments—demands also made by the European Commission as part of its granting Spain another two years to reduce its budget deficit below the EU ceiling of 3 percent of GDP."
Posted on: Sat, 22 Jun 2013 20:10:34 +0000
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