Instead of helping the Spanish people and small businesses, the government has bailed out its big banks and then implemented austerity measures to try to dig its way out of its fiscal hole. That’s why people are protesting. (Source)
- GDP came in lower than expected – which was already a disaster.
- Personal income tax receipts are down 19.4%
- Corporate income tax receipts are down 42.7%
- VAT collection is down 22.4%
- Excise tax receipts are down 40%.
- The deficit compromises growth objectives for 2012 through 2014.
- Staff reductions are increasingly difficult.
Spain is in a very problematic situation.
Is a bailout of Spain in the cards, or is Spain simply too big to bail? We will have our answer in due time. (Source)
- Spain’s Zapatero Says No To New Term And Now Austerity May Be In Danger (businessinsider.com)
- Spain PM rules out more austerity measures (reuters.com)
- Spain: no new austerity needed to cut deficit (theglobeandmail.com)
- Spain: no new austerity foreseen to cut deficit (seattletimes.nwsource.com)
- Is Spain next to fall? (business.financialpost.com)
- What’s The Point Of Austerity Again? (businessinsider.com)