As the Spanish economy teeters on the edge of collapse, it is time for me to write an incisive analysis of the financial problems facing the country. However, that can wait until later. I’ve just managed to catch Morris singing on camera again…
Nice song but it needs developing. With all the cuts in education and the health service, we are unlikely to get a government grant to help Morris develop his braying. The other three donks will just have to provide some support and encouragement.
Well, it’s probably not quite so exciting as Morris learning to sing, but the Spanish economy is about to go down the toilet. That’s what everyone seems to think here. Rajoy made his very silly off-the-cuff remark a couple of days ago, picked up by a press microphone, that the labour reforms his government is soon to announce will provoke a general strike. A general strike is certainly coming soon. But it will make little difference to anything here. The game is over.
Edward Hugh’s blog is the place to go, if you want a real economist’s view of what is happening here in Spain. http://spaineconomy.blogspot.com From the point of view of a chap with a teaching job in a private school and four donkeys to feed, it looks like this at present. We have now been told that the next pay packet will be reduced by 50 Euros. This is because the Autonomous Regional Government of Valencia (the Generalitat) has run out of money, mostly due to poor management and ‘Pharaonic’ schemes – as some journalists have described them – which have bankrupted the region. We have to pay for this, with a monthly salary reduction in extra taxes. From a net pay packet of 1500 Euros I now lose 50 Euros a month.
That is the start of our economic roller coaster ride. VAT is going up from 18% to 21% and that will affect everything. So we have a reduction in pay and a significant rise in prices. As we have always said that our low pay is balanced by the low cost of living (and the Costa Blanca sunshine!) teachers in my school have been unconcerned about their pay compared with what they would expect to earn in the UK. This situation will now put us into a different frame of mind: what is the point of a demanding job when it hardly providesa living wage?
At least it is a job. The TV pictures this lunchtime show redundant Spanair workers crying after their jobs disappeared, with the collapse of the airline. Things will get tough. Things will get tough very soon.
Keep singing for your supper, Morris.