Amongst all the media talk of “savage cuts” in government spending in Spain (supposedly government spending is being cut by “17%” - surely that should mean that government spending next year will be 17% less than it is this year, does anyone believe it will be?) I have noticed the following facts……
Civil Service pay is being “frozen” (not cut by 17%), and unemployment benefits and pensions are not being cut at all - rather important in a nation with about 24% unemployment, and with a rising percentage of retired people on top of this.
I have also noticed that both personal and company taxation are going to be increased in Spain (on top of the tax increases that have already happened).
This increase in taxation (both on individuals and enterprises) may well hit the economy rather badly - but, have no doubt, the international collectivists will blame any slump on the “17% cut in government spending”.
At least no one is suggesting that major savings could be made from getting Spain out of wars it is not in, or by cutting the Spanish armed forces (all 1% of GDP that they cost).
In Spain (as in so many places) the Welfare State is out of control - and after today’s “dramatic action” (the “most savage cuts since Spain returned to democracy in 1975″ - as “Euronews” put it, just before getting on to the important business of attacking evil Jews for fireing rubber bullets and teargas at noble Islamists) ….. the Welfare State will still be out of control.