More austerity, perhaps, will fix this…
Spain is proving that austerity for austerity’s sake is the “scab refs” of economic policy. Fixing artificial debt to GOP numbers, then taking away a country’s ability to pay down its’ debt is working for someone, somewhere. Nobody knows who is winning, but somewhere it is imagined that a banker is looking at a vault full of money and that makes it all worth it.
(Reuters) – Violent protests in Madrid and growing talk of secession in wealthy Catalonia are piling pressure on Spanish Prime Minister Mariano Rajoy as he moves closer to asking Europe for rescue money.
Rajoy has been resisting calls from influential domestic bankers and the leaders of France and Italy to move quickly to request assistance, but a series of events this week will drive him closer.
With protesters stepping up anti-austerity demonstrations, Rajoy presents more painful economic reforms and a tough 2013 budget on Thursday, aiming to persuade euro zone partners and investors that Spain is doing its deficit-cutting homework despite a recession and 25 percent unemployment.
The people in Iceland followed a very different path and are in clear recovery mode. Some of this isn’t available to the other countries in crisis, but I still don’t get why you would make banks whole and leave consumers — the people who power your economy — floundering.