…the economic and political scene in Greece and Spain is looking rough.
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.
A series of events — those are called riots in most of the rest of the world.And parts of Spain are talking about succession:
CATALONIA INDEPENDENCE MOVEMENT
The government’s drive to rein in regional overspending as part of its austerity measures has prompted a flare-up in independence fervor in Catalonia, the wealthy northeastern region that generates one-fifth of Spain’s economic output.
Just as the euro zone crisis has strained relations between wealthier nations of the north and heavily indebted countries to the south, Spain’s crisis has aggravated tensions between the central government and its self-governing regions.
Catalonia is broke and needs a 5 billion euros bailout from the central state to meet debt payments this year, but Catalans are convinced they bear an unfairly large share of the country’s tax burden.
More than half say they want independence from Spain, the highest level ever.
Maybe there is something to being more like Europe — at least parts of it (That was a joke — poking the europhiles in the eye with the fact that Europe isn’t the Paradise they make it out to be.)
Spain’s reluctance to seek a sovereign bailout – a condition for European Central Bank intervention to cut the country’s borrowing costs – could propel the euro zone into deeper trouble.
And I’m not sure where any possible bail out is going to come from — countries are already borrowed money in order to provide the first bail out to Greece.
And Greece is still on shaky ground
The clashes occurred after more than 50,000 people marched to parliament chanting “We won’t submit to the troika (of lenders)” and “EU, IMF Out!” on a day of strikes against a new round of cuts demanded by EU and IMF lenders.
As the rally ended, dozens of black-clad youth threw stones, petrol bombs and bottles at riot police, who responded with several rounds of teargas. Police chased the protesters through Syntagma square in front of parliament as helicopters clattered overhead. Smoke rose from a small blaze in a corner.
The strikes, called by the country’s two biggest unions representing half the four-million-strong work force, is shaping up to be the first test of whether Prime Minister Antonis Samaras can stand his ground.
Again — 50,000 people marching with some of them throwing stones and Molotov cocktails — that is a riot folks !
I found it confusing when I hear people complaining about not being able to leave on the amount they are making and then I read this:
“These tax hikes and wage cuts are killing us.”
The traditional summer break has allowed the fragile conservative-led coalition to enjoy relative calm on the streets since narrowly coming to power on a pro-euro, pro-bailout platform, but unions predict an end to the lull.
According to what I can find; Greeks enjoy 25 vacation days per year in addition to the 12 paid holidays each year — 37 days.
The economy in Europe affects the people in America in significant ways
U.S. stock futures are sliding as the European economic crisis devolves into social unrest for the most vulnerable countries like Greece and Spain.
Most of my retirement funds are in 401(k) accounts, just like many people in this country. Our economy is fragile and can’t take too many shocks before the whole house of illusionary cards come tumbling down.
Keep up with your preps folks, it is gonna get rocky or worse.