THE Balearic government is effectively bankrupt allegedly because of the high spending plans of the previous government. The incoming government of Jose Ramon Bauza has said that coffers are effectively empty. A similar state of affairs occured in Britain with Prime Minister David Cameron saying that Gordon Brown and Tony Blair effectively spent Britain into the red. If these allegations are true then both former Balearic leader Francesc Antich and British Prime Minister Gordon Brown should give an official explanation and perhaps even say sorry for their wild spending plans. In Britain and the Balearics major spending projects will have to be placed on hold because there is simply no money.
This effectively means that it is going to be difficult to emerge from recession. Bauza is considering David Cameron style cuts because there is no money left. The serious debt problems which are hitting the Spanish regions are already starting to cause concern in Madrid, which has its own deep economic problems. Whatever happened to the idea of fixing the roof when the sun was shining. If this had been the case in Britain and in the Balearics then both country and region would now been emerging from recession with a clear future. Unfortunately this has not been the case. Both governments have to hope that the private sector can save the day and pull the economies out of recession. This is going to be a long and very difficult task for all involved.