CHANGES IN SPANISH ECONOMY

This Friday Spain will have a new president. Today, the future president told us what kind of politics is going to use in the next four years. Here we have them.

One of his objectives is to decreese the public budget deficit in about 16.500m euros. Also he is going to decreese the expenditure of the Spanish Public Administration. He is not going to repair the redundancies of the goverment employees, he will do only in basic services. He will remove the early retirement, but he will maintain them only in special situations. It will remove the days of holiday, the famous bridges (when you take more than one day of holiday), changing the holiday days to Mondays, saying that this kind of change will be better for the Spanish economy. But not all the news are bad, because he had said that he will update the retirement pensions with the IPC (Spanish reference to calculate the increase of the contracts, etc.) the 1st of January.

The economic and the unemployment situation in Spain is really dramatic. Spain has actually more than 5,400,000 people on an unemployment situation, more or less the 23% of the total.

He is going to do three different reforms in different fields. He will reform the finnancial sector and the public sector. The future president had said that the new goverment is not going to spend more than the minimum necessary. For example, one of his important changes will be the limit who is going to put into practice to all the Spanish public institutions, in the expenditure and indebtedness. He will change the finnancial system too, reorganizing balances, and promoving the fussion between different banks. For the public administrations and the factories he will promove a reform of the IVA (it is like a tax that it is impose to commercial transaction).

Erik Rios Salazar