Cutting back

I was interested to read yesterday that one local economist believes that the local authorities should triple their public spending cuts to get the local economy back on track. This is not an outrageous claim, it is probably a fact and something the Spanish and Balearic governments should take into account. Spain is now officially in recession again and the government´s economic policies do not appear to be refloating the sinking ships. Prime Minister David Cameron, when he was elected to power, announced major public spending cuts across the board to bring the record budget deficit under control. As a direct result Britain has managed to keep its triple AAA debt rating and the British economy appears to be on course to avoid a second recession. The cuts have been deep and unpopular but economists say that they were needed. Spain has tried to put off the inevitable and the spending cuts have not been deep enough. It appears that the Spanish government was not prepared for a confrontation with the trade unions. Only now is the government announcing a whole series of policies aiming at creating employment and trying to bring the budget deficit under control. Better late than never? Well perhaps so but Spain and the Balearics has an economic mountain to climb if it is ever to return to economic growth again. The Balearic government should take courage and cut spending because otherwise we risk being in recession for many years to come.