Friday 13th (2012) will be remembered in Spain as one of the worst days in Spanish recent history as this day of July has been the day when the Spanish government has made the most draconian cuts I ever remember.
The cuts are so general here and there that it is as if the shape of Spain had changed forever.
A little summary so you see:
– civil servants will not receive Christmas extra wage (there are a lot of civil servants so this Christmas there will be less shopping so this will be bad for the commerce, the civil servants and its families)
– VAT will increase. So we all become poorer. In fact it is not just that. Some increases will affect some parts more so for example the cinema will be affected.
– People who take care of dependent people relatives will receive 15% less wage.
But it is not just that. There are also other laws in between! For example some houses who were made too close to the sea won’t be sanctioned for some decades or something like that.
In brief, after all this rules we become poorer here and there and not only that some key things may suffer maybe too much to survice. The cinema may have receive a very hard blow it seems.
Even to die is going to be more expensive … at least the services afterwards …
A lot of protests will happen now in Spain. So we will have not just less money in our pockets. We will also have trouble in our streets.
As I follow the news about the markets it seems that we had problems to recieve money so I can understand we have to reduce expenses. And I also understand that nobody likes to become poorer so that protests will take place.
But the real problem I see here is that we maybe making two many mistakes between all together. it is obvious that cuts have to be made but what comes next?
I have the feeling that Spain is going back to times prior to the entrance inside the European Union. We were very happy to enter the EEC in 1986 because it was nice to be part of a wealthy club of democracies. But now I have the feeling as if we have awakened from a dream.
The problem I see now is that if we must make cuts I wonder which is the level that the cuts must reached in order not to make more! How much poorer we need to become in order to stabilise the country?
Some decades ago we did not have a PC, a laptop, a smarthphone, a tablet, a data and voice invoice … so I wonder what may happen in the future.
To imagine one with more money is quite easy. But the opposite it is terrible among other things because you do not know the limit!
I have made my own forecast and I have the feeling that at least we are getting about 25% poorer.
One of the mysteries of Spain is how we cope with so many jobless people. We have about 25% jobless people. I only can imagine that we survive because this 25% jobless people most receive the help of their families.
But now the cuts will affect also these families so this can become a nightmare.
If we become poorer but at the same time we have less jobless people then at least you could have some hope. But I am afraid that currently we are getting poorer and that the jobless people will even increase.
In any case this is what I think I would do:
First of all, tel the people really what is happening. Trust is what matters and unfortunately the Spanish politicians deserve not my trust. I see them as crazy people who discuss between them while a tsunami is approaching. The situation is too hard to be so divided!
Let me end with a positive note. These days I have realised that not all is bad now. It is an excellent time to initiate some bold actions that one had had in mind for months!
The worse in Spain are not the cuts but how we react to them.
- The pain in Spain (ftalphaville.ft.com)