steviedeluxe

http://www.bloomberg.com/news/2012-0...tells-ser.html

Not sure how they will pull that one off - won't the higher earners just go private?

Rambling Rose

Won't it save the government money if they do?
In the long run health care nearly always costs way more than peoples contributions.

cricketman

People who earn over 100k per year already go private! So it wont save any money

There are 1 of 3 reasons for this policy
1. The PP are stupid and incompetant
2. The PP want to make a gesture towards the rich to say "look their suffering too" without actually hurting them
3. This is the thin end of the wedge. Get the law past and then see the limit fall. Within a few years it may be 50k, then 30k etc

bobd22

Could it just be that they have to be seen to be doing something to keep Mrs Merkel on board?

cricketman

It seems that all policies being put out are to appease the EU and at the same time the markets

The "prima de riesgo" i.e. how much it costs Spain to refinance their debt is again at record levels because the markets have no confidence in them

So Rajoy is announcing new cuts whenever there is an important renewal of debt

Obviously this is putting the cart before the horse. They are soundbites without substance. Yesterday they annouced that they would be cutting 100 billion euros from health and education, but with no details how they would be doing so.

It would be a bit like me going to a bank and asking for a big loan because I'm going to make 1 million euros next year, but having no evidence to back it up

The PP are trying to do something, unlike the PSOE who fiddled while Rome burned, but they do not understand that they need to create a future for Spain. Instead they are just saying they are going to cut and cut, but with no plans for growth.

e.g. they cut half of all the scientific research budget a few weeks ago. Craziness. Who do they think is going to create economic growth?

Governments are so used to the imaginary numbers of the liberal financial markets over the past 10 years or so that they think economies are imaginary and dont need to be created, managed or worked on.

HBG

All countries have to service their debts, and are terrified the markets and rating agencies push up the amount of interest they have to pay. That's over-simplified the problems by a factor of at least ten, but the world's solution is austerity of one sort or another.

You need to borrow money for growth, QE only works for a short time, and then the loan sharks knock on the door. And the media's hysterics don't help, Spain is being slaughtered all across the world right now, just as Greece was a short time ago, and there is little similarity between the countries apart from having a Mediterranean coastline.

I don't think Rajoy had any more choice in the matter than our own Cameron. I only hope it works, for both of them, and you and me.

cricketman

Here are a couple of great videos that explain the housing bubble and the crisis by way of a comic book strip

Created by a young guy in Barcelona. Aleix Saló

The 2nd one doesnt have English subtitles yet, but someone is bound to put them on in the next few days

http://www.youtube.com/watch?v=xWrbAmtZuGc

http://www.youtube.com/watch?v=TfRSfF296js

jackytoo

Lot of bad news coming out of Spain today, even the Government are sounding fatalistic. They are between a rock and a hard place. Borrowing costs up again...I don't think the euro is ever going to work.

JLFS

Well some dont have to worry about the failure of euro or pound, the dollar is their main concern, Hamza for one.

agoreira

Bad news indeed, they're cutting down on the number of sex changes, vasectomies and IVF. A whole raft of possible changes announced today, paying towards medicines, cutting down on the use of ambulances, pay for hospital food,(Cataluña) and strict control of EU citizens living in Spain using their health card to get treatment in their own countries. Bring it on!
http://www.abc.es/20120411/sociedad/...-20120411.html

Lynn R

I've said for years that the British NHS should stop providing "lifestyle" treatments (all the ones mentioned in the article and cosmetic surgery except to correct disfigurements caused by accidents or those children are born with). If they did there might be more money available to reduce waiting lists and improve care for the elderly. I hope the Spanish authorities will also crack down on those people who use their EHIC cards to access health care in Spain when they are actually resident here, although I suppose it is the UK who would ultimately pay for that.

It is not so good, however, to read that all Spanish citizens regardless of income will have to pay 40% of the cost of prescription medication, or that ambulances will no longer be provided to transport elderly people for rehabilitation treatment. This will hit the poorest in society disproportionately hard, and those living in areas where public transport is not good.

agoreira

Agree, also the particular proposal mentioned is for foreigners living in Spain from heading back to their native country to get work done on their Spanish health card. I've no experience of this, but not sure why this would happen, people tell us the health care is so much better in Spain, why would they opt to have something done in UK or Germany and bill Spain?
Agree, but that's invariably the way these sort of cuts happen, it's not the rich that will be feeling the pinch in whatever country they're in.

jackytoo

I think Rajoy has caught the sticking plaster method from Brussels. Today is news that cash transactions over 2500€ are to be prohibited in order to prevent fiscal fraud. OK plan but it's not going to make much difference at this stage. Same as changing the labour laws, they are still much too generous.

steviedeluxe

It could be that this last week has been a blip and the interest that Spain has to pay reverts to the lower level of the last few months...be interesting if it stays high. I notice that actually the levels are decreasing again today and the stock market is recovering. Vamos a ver..
Interestingly the Germans seem to think Spain (and Italy) are on the right track
http://www.bloomberg.com/news/2012-0...needed-1-.html
Of course the real test will be in the weeks/months ahead. If the interest Spain pays on its debt remains at the high levels of the last week, expect big problems. If the premium they pay reduces to that of the last 3 months then it will show the markets have confidence in Rajoy's measures.

jackytoo

Rates have dropped (slightly) today because of intervention by the ECB...more sticking plaster. Looking at borrowing costs for Greece, Portugal it seems they will never get out of the mess.