0

by Jason Moore

The wave of industrial unrest which is sweeping Spain at the moment is rather unproductive because the Spanish government has little option but to cut-back on public services otherwise the country is heading for economic ruin. The government of Mariaño Rajoy has been forced to bite the bullet and slash public services. The new labour reforms which hav e been introduced are meant to help employers and get Spain moving again. Redundancies payments have been slashed and companies can now hire and fire without too many problems. Yes, the trade unions are right and the labour reforms are something of a kick in the teeth for workers but unfortunately hard times call for hard decisions. This is Spain´s fourth year of economic problems and the local economy is now heading for recession again. The Balearic government has been told to triple its economic cuts by some experts. Further public sector jobs are at risk. This is obviously going to cause pain but there is no gain without pain. If this recession is ever to end then both Spain and the Balearics must start paying its way again without borrowing. The days of the credit card are over. Local authorities are in a major financial mess, much of which is of their own making. They spent heavily during the good old days and now there is nothing left. So there are difficult times ahead but I hope that the cuts which the government is planning to introduce will pay a dividend, one day.