MADRID | First quarter figures showed a marked deterioration in central government finances. Its gap has grown by ¾ as compared to the same period of the previous year, reaching 1.85% in terms of GDP. A most disappointing outcome that undermines firm pledges to slash deficit this year in a substantial way. Claims that more money has been pumped to regional authorities, pensions and unemployment benefits appear as futile excuses. For…
MADRID | Spain’s minister of Economy Luis de Guindos suggested, almost announced, without giving away much detail immediate reforms in health care and public education to adjust the final accounts of the State. The new austerity measures are meant to touch the very nerve in public spending since both departments sum up to one third of total government spending, apart from the pension system that belongs to another cash register. The…
NEW YORK | It seems that there is already a critical mass of economists suggesting that the whole austerity passion that all of a sudden possessed world leaders is just the wrong passion. In this Monday CNN’s interview, Nobel economics laureate Joseph Stieglitz said he thinks the US government has to go away from austerity and go for a growth strategy. The same applies to Greece: if they continue to…