Spain makes U-Turn
According to The Telegraph Spain’s Popular Party, their conservative party, has won a landslide in recent national elections. They are to have taken 181 to 185 seats giving them an absolute majority. This is outright rejection of the ruling Socialist and affirmation that the citizenry recognize that false good times have come to an end.
Five million, around 22 percent, of Spain’s population is presently unemployed. It is the highest right in Europe. Spain is the country that gave us the standard of 1 new green job destroys approximately 2.2 real jobs. The Socialist have followed the paths that Greece and Italy were on and the same path that Obama and the progressives are promoting and forcing on Americans. Their problem they ran out other people’s money.
The voters in Spain have stepped up to the plate and bit the bullet for change that should lead the country back to prosperity. The present system that they have in place will bring economic destruction to the country and without change they are doomed and on path to become another Greece. Spain has now rejected the premise that they must continue on that path and have replaced their government.
What the Spanish are facing, if the Popular Party is to succeed, are massive cuts in government. The socialist’s progressive programs will be phased down and/or out. They are going to have to end the push for a great “green” country, which has been a job killer. They will have to cut programs to pay down debt.
Popular Party leader, Mariano Rajoy, must move quickly with appointment of ministers. His appointments, if successful in their fields, will provide reassurance to the markets and voters. Mr. Rajoy should look to the United Kingdom; they first made cuts to the elected officials budgets and salaries to show good faith to the rest of the Kingdom that they are serious about what must be done and that everyone will have to bare a part of the pain.
Mr. Rajoy will have to set a new standard in Spain and Europe as to austerity measures to bring Spain back from the brink. The question is will he have to seek a bailout for the country to survive the years of progressive programs and how deep he will have to cut to bring Spain out of the darkness those programs brought.
The Popular Party has been telegraphing that they are willing to take corrective actions and that they are asking the voters, investors and business to give them time to get measures in place. They are working overtime to convince the markets that it will take a little time to move legislation though and implement into law. They are also saying that once in place it will take a little time to cycle into place and begin to effect day to day life and the economy.
For Americans if you are wondering what will happen in the United States if the present course is maintained, all one needs to do is look to Europe.
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