IMF Squeezes Spain Again

SPN IMF demandsThe International Monetary Fund might recognize that the Spanish economy is improving, but it still wants more measures that will only cause more suffering from a crisis-weary population.

In fact, they are pretty much the same ones that they were demanding at the beginning of the crisis: higher IVA and co-payment for medicine and medical services. The IMF also called on the Government to make it cheaper to kick people out of their jobs, bless their cotton socks.

Of course, the Central Government (PP) has already received a thrashing in the municipal and regional elections, so they were quick to announced that they would not be following the IMF’s recommendations.

The IMF pointed out that Spanish unemployment is still unacceptably high – they don’t need to tell the average Spaniard that, of course.

The IMF considers that the cost of dismissing workers with open-ended contracts are too high, which causes companies to stick to limited-term contracts; if it were not so expense to fire somebody, there were be more open-ended contracts, they argue.

The IMF also praises increases in the euphemistically known “wage flexibility” introduced in recent years. We’re basically talking about working longer and for less, of course.

Editorial comment: one gets the impression that if a country behaves (Spain) it receives the same treatment as for those that don’t (Greece).

The problem is that jobs are so poorly paid nowadays that families have trouble reaching the end of the month, let along going out and spending, which is the only thing that will get the economy going.

(News: Spain)

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