The EU has stepped in and forced a 5% reduction in the pay of Spain's public sector employees. Spain has a UK-like public sector deficit of 11% of GDP. As a Eurozone member it is meant to adhere to a maximum deficit of 3% of GDP.
As well as pay, pensions and Spain's 2,500 Euro "Baby bonus" are also to be cut.
The EU has been forced to take the initiative given the fall out from the Greek financial debacle.
Will the Tory and Liberal Democratic dare impose such fiscal discipline on the UK economy?
13 May 2010
11 May 2010
Markets Incredibly Stable During Political Turmoil
I find it amazing how stable the Sterling exchange rate is versus the major gobal currencies of the US Dollar, Euro and Japanese Yen during this period of unprecedented political turmoil. If we take out the fluctuations due to the Greece crisis there has been very little downward movement in Sterling 
during a period when there is a real possibility of a Labour/Liberal pact.
during a period when there is a real possibility of a Labour/Liberal pact.
Subscribe to:
Posts (Atom)