French president François Hollande's governing Socialist party has delivered a blistering assault on Germany's chancellor, Angela Merkel, accusing her of causing the single currency crisis that has been tearing Europe apart for more than three years, of acting selfishly and intransigently in her own political and German national interest, and demanding a "showdown" with the "chancellor of austerity". The French socialists' criticisms, in a draft paper on party policy on Europe ahead of a conference in June, came as Spain dramatically shifted its commitment to austerity. Spain set a far higher budget deficit target for this year while admitting that the country's chronic unemployment would stay above 25% for the next four years.
Spain's move to ease its deficit burden was praised by the European commission in Brussels in what is a clear sign that it, too, has radically changed its previously hawkish insistence on harsh austerity. It said in a statement: "Regarding the fiscal targets, the postponement of the correction of the excessive deficit (to below 3% of GDP) to 2016 is consistent with the current technical analysis by the commission services of what would be a balanced – but still ambitious – fiscal consolidation path, given the difficult economic environment." The Spanish finance minister, Luis de Guindos, insisted that, despite continued recession and 27% unemployment, Spain was turning the corner and that last year's intense austerity measures - which helped tip a further 600,000 Spaniards into unemployment – had been worth the effort. "The results have not been good but they could have been much worse," he said. However, the government said it would still have to raise taxes to meet the new deficit targets. The budget minister, Cristóbal Montoro, pledged no rises in VAT, income tax or fuel taxes, but said other special taxes would rise. He refused to say which ones they were. Company taxes will also rise and a small tax on banks, based on their deposits, is to be introduced.
The prime minister, Mariano Rajoy, continued his tradition of avoiding the press and public when major announcements on the economy are made, and left ministers to present the changes.
5 comments:
The Icelandic left gvnt made a very big mistake. It intended to join the EU (and hence the euro) against the wishes of the majority of the population. Given the chance, the people has preferred to deal with those who caused the crisis rather than with far-away undemocratic euro-technocrats.
I hope the social-democrats in other countries learn their lesson: surrendering national sovereignty to Brussels and Frankfurt will not bring them any benefits
The political revolution is not so much about kalashnikovs and passionate rhetoric. A democratic revolution should be seen as a new stage of humanity's development, primarily a new way of thinking and innovation in a system of social relations and governance. If it fails to do that then it is merely yet another ‘palace coup’ bringing grist to someone else's mill. Replacing leaders doesn't alters the system allowing arbitrariness. And the political systems and forms of government based on the principle of "the one is the winner, the rest are the losers" are unjust from the start and will never be able to bring freedom, peace and stable equilibrium to a society.
A new, multipolar political system as a real Democratic Revolution.
The PRESIDENT ISN'T PRESENT MORE. A working multi-party system within the government guarantees multiculturalism, tolerance and social stability within community.
http://www.modelgovernment.org/
The Greek parliament has passed a bill which will see 15,000 state employees lose their jobs by the end of next year.
The bill passed by 168 votes to 123, and had the support of the three parties making up the ruling coalition.
It is part of continuing moves by the centre-right government to cut costs and ensure more bailout money from international creditors.
But it was vociferously opposed by protesters outside parliament.
The new law will overturn what had been a constitutional guarantee for civil servants of a job for life, says the BBC's Mark Lowen in Athens.
The sector has been seen as notoriously bloated since it expanded in the 1970s and 1980s as successive administrations employed their own people, our correspondent adds.
Some 2,000 civil servants will lose their jobs by the end of June, another 2,000 by the end of the year, and a further 11,000 by the end of 2014.
State workers who have broken rules will be targeted for dismissal, but many are expected to be replaced by younger employees in key sectors such as health.
So the law will not slim down the public sector, our correspondent says. That would be achieved by a parallel plan that would see 150,000 state jobs go by the end of 2015, by replacing only some of those who retire.
As MPs debated the measures inside parliament, several hundred demonstrators outside took part in a protest called by Adedy, the civil service trade confederation, and the private sector GSEE union.
They were demonstrating against what the unions called "those politicians who are dismantling the public service and destroying the welfare state".
Critics say the law, which is part of a larger package of measures, will only add to Greece's record unemployment rate of 27%.
They say many of those who will lose their jobs are older workers already struggling to support their families and make ends meet.
But others say the measures are overdue.
Divisions
The conservative coalition, led by Prime Minister Antonis Samaras, has 167 seats in the 300-seat parliament so the measure was always expected to pass.
However, there are reports of divisions within his government on some issues and there is speculation he could reshuffle his ministerial team soon.
Eurozone finance ministers are expected to decide on the next instalment of aid for debt-ridden Greece at a meeting on 16 May.
Since 2010, the European Union and the IMF have promised more than 200bn euros in lending for Greece, the first country to be hit by the eurozone crisis.
The government has imposed tough austerity measures in return for aid, including cuts in pay and pensions leading to numerous general strikes.
Renato Brunetta, lower house leader of Berlusconi’s People of Freedom party (PDL), said the government would fall unless Letta promised in his maiden speech to urgently abolish an unpopular housing tax and repay the 2012 levy to taxpayers.
Letta is expected to set out his government’s plans in parliament on Monday and will then need to win a vote of confidence in both houses to be fully empowered.
“If the prime minister doesn’t make this precise commitment we will not give him our support in the vote of confidence,” Brunetta told daily Il Messaggero.
Brunetta, who was himself a candidate for the post of economy minister, said that during negotiations for the formation of the government Letta had “given his word” on the abolition and repayment of the tax, which would leave an 8 billion euros hole in public accounts.
However, on Sunday attention was focused on the dramatic shooting outside Palazzo Chigi, the prime minister’s official residence, with several politicians warning that the fevered political climate may have contributed to the episode.
Luigi Preiti, in his forties, from the southern Italian region of Calabria, was arrested.
Having fired several shots at the two police on duty outside the prime minister’s office, he shouted “shoot me, shoot me” to other police officers nearby, police said.
One of the two officers was shot in the neck and was in a serious, but not life-threatening condition, while the other officer was shot in the leg and less seriously hurt.
Post a Comment