One reason black money will always flourish in Spain.
#1
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One reason black money will always flourish in Spain.
Despite the cuts, the UK Government is still very generous.
I wonder how many expats in Spain know about the new cuts to welfare payments in Spain.
Under the old more “generous “ rules people who had been receiving unemployment benefit had the amount cut down to 60% of their entitlement after 6 months.
Under the new rules, that is cut down to 50% after 6 months.
And then of course the maximum length of time you can receive paro for is 2 years.
If I am not wrong the UK system gave long-term unemployed a bit more, whereas in Spain it has always been the opposite, they longer you were on benefits the less you got.
The black money situation in Spain will never be solved unless the government help the disadvantaged in Spain, as the general population have no incentive to pay the dues, because when they need financial help , there is practically none.
I wonder how many expats in Spain know about the new cuts to welfare payments in Spain.
Under the old more “generous “ rules people who had been receiving unemployment benefit had the amount cut down to 60% of their entitlement after 6 months.
Under the new rules, that is cut down to 50% after 6 months.
And then of course the maximum length of time you can receive paro for is 2 years.
If I am not wrong the UK system gave long-term unemployed a bit more, whereas in Spain it has always been the opposite, they longer you were on benefits the less you got.
The black money situation in Spain will never be solved unless the government help the disadvantaged in Spain, as the general population have no incentive to pay the dues, because when they need financial help , there is practically none.
#2
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Re: One reason black money will always flourish in Spain.
The key is to stop it at the high end i.e. Urdangarin et al - and let the paupers get on with it
What Spain needs is more employment - and in decent jobs, black money is just a symptom of an uncompetitive economy
#3
Re: One reason black money will always flourish in Spain.
Putting a time limit on unemployment benefit is all very well when there is low unemployment as it can be an incentive to find a job.
But in Spain's current situation that is simply not the case - there are no jobs to find. The long term unemployed have already used up all their savings and their families' savings. The charities can't cope with demand any more, and these latest changes will just drive desperate people to crime.
I saw on TV last week that somebody stole the jewels from a statue of the Virgin during a Semana Santa parade. That would have been unthinkable ten years ago.
But in Spain's current situation that is simply not the case - there are no jobs to find. The long term unemployed have already used up all their savings and their families' savings. The charities can't cope with demand any more, and these latest changes will just drive desperate people to crime.
I saw on TV last week that somebody stole the jewels from a statue of the Virgin during a Semana Santa parade. That would have been unthinkable ten years ago.
#4
Re: One reason black money will always flourish in Spain.
Another reason is the absurdly high level of autonomo monthly payment. If ever there was a disincentive to small business it is that.
#5
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Re: One reason black money will always flourish in Spain.
But in Spain's current situation that is simply not the case - there are no jobs to find. The long term unemployed have already used up all their savings and their families' savings. The charities can't cope with demand any more, and these latest changes will just drive desperate people to crime.
Of course it's not a lot, but it is something - and it is two thirds of the minimum wage which sounds quite fair. I may be turning into a Tory in my old age, but I think many British people would like benefits to be limited to a % of minimum wage as that would encourage them to work
Lack of jobs is the bigger issue as you say
#6
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Re: One reason black money will always flourish in Spain.
to meet that high level every month whilst struggling to just make a small profit must be hard and a continual worry.
#7
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Joined: Nov 2010
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Re: One reason black money will always flourish in Spain.
Despite the cuts, the UK Government is still very generous.
I wonder how many expats in Spain know about the new cuts to welfare payments in Spain.
Under the old more “generous “ rules people who had been receiving unemployment benefit had the amount cut down to 60% of their entitlement after 6 months.
Under the new rules, that is cut down to 50% after 6 months.
And then of course the maximum length of time you can receive paro for is 2 years.
If I am not wrong the UK system gave long-term unemployed a bit more, whereas in Spain it has always been the opposite, they longer you were on benefits the less you got.
The black money situation in Spain will never be solved unless the government help the disadvantaged in Spain, as the general population have no incentive to pay the dues, because when they need financial help , there is practically none.
I wonder how many expats in Spain know about the new cuts to welfare payments in Spain.
Under the old more “generous “ rules people who had been receiving unemployment benefit had the amount cut down to 60% of their entitlement after 6 months.
Under the new rules, that is cut down to 50% after 6 months.
And then of course the maximum length of time you can receive paro for is 2 years.
If I am not wrong the UK system gave long-term unemployed a bit more, whereas in Spain it has always been the opposite, they longer you were on benefits the less you got.
The black money situation in Spain will never be solved unless the government help the disadvantaged in Spain, as the general population have no incentive to pay the dues, because when they need financial help , there is practically none.
Having said that, I agree about the black economy.
Last edited by CapnBilly; Apr 9th 2013 at 1:28 pm.
#8
Re: One reason black money will always flourish in Spain.
Families can still get 450 euros a month if nobody in the family is earning I believe
Of course it's not a lot, but it is something - and it is two thirds of the minimum wage which sounds quite fair. I may be turning into a Tory in my old age, but I think many British people would like benefits to be limited to a % of minimum wage as that would encourage them to work
Lack of jobs is the bigger issue as you say
Of course it's not a lot, but it is something - and it is two thirds of the minimum wage which sounds quite fair. I may be turning into a Tory in my old age, but I think many British people would like benefits to be limited to a % of minimum wage as that would encourage them to work
Lack of jobs is the bigger issue as you say
http://trabajo.practicopedia.lainfor...00-euros-17561
Last edited by Pocaloca; Apr 9th 2013 at 2:00 pm.
#9
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Re: One reason black money will always flourish in Spain.
There's a clue in the word MINIMUM! You think two thirds of the minimum you need to survive is fair? Also the €450 is now €400, you have to meet certain conditions to receive it, and the policy (Plan Prepara) is reviewed every six months, so it could be scrapped at any time.
http://trabajo.practicopedia.lainfor...00-euros-17561
http://trabajo.practicopedia.lainfor...00-euros-17561
I completely sympathise with families who live in areas where there are no jobs. All I can suggest is that they move, things arent going to improve soon. That's reality.
Just to add, the British model isnt the one to follow here. Generous benefits create dormant communities on the edge of society. Spain needs to give greater opportunity to its people, not bigger handouts. It would be great if there could be a minimum of shelter and food provided, but given the lack of starving homeless people in Spain, despite 27% unemployment, then perhaps there isnt a need (controversial)?
Last edited by cricketman; Apr 9th 2013 at 2:16 pm.
#10
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Joined: Dec 2011
Posts: 253
Re: One reason black money will always flourish in Spain.
Putting a time limit on unemployment benefit is all very well when there is low unemployment as it can be an incentive to find a job.
But in Spain's current situation that is simply not the case - there are no jobs to find. The long term unemployed have already used up all their savings and their families' savings. The charities can't cope with demand any more, and these latest changes will just drive desperate people to crime.
I saw on TV last week that somebody stole the jewels from a statue of the Virgin during a Semana Santa parade. That would have been unthinkable ten years ago.
But in Spain's current situation that is simply not the case - there are no jobs to find. The long term unemployed have already used up all their savings and their families' savings. The charities can't cope with demand any more, and these latest changes will just drive desperate people to crime.
I saw on TV last week that somebody stole the jewels from a statue of the Virgin during a Semana Santa parade. That would have been unthinkable ten years ago.
#11
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Re: One reason black money will always flourish in Spain.
That's much the same as Norman Tebbit told the unemployed in Britain back in Thatcher's day. For the vast majority of them it wasn't realistic then, and it isn't now. If they have a mortgage and no hope of selling their property, or renting it either to cover the mortgage payments because nobody else in their area has the money to buy it or pay the rent, how can they up sticks and pay for housing in another area? Not to mention the small detail that housing costs in an area or country where employment opportunities are more plentiful are certain to be much higher than where they would be leaving.
#12
Re: One reason black money will always flourish in Spain.
Minimum wage is what you get paid for working. It wouldnt be fair if someone was paid the same for not working
I completely sympathise with families who live in areas where there are no jobs. All I can suggest is that they move, things arent going to improve soon. That's reality.
Just to add, the British model isnt the one to follow here. Generous benefits create dormant communities on the edge of society. Spain needs to give greater opportunity to its people, not bigger handouts. It would be great if there could be a minimum of shelter and food provided, but given the lack of starving homeless people in Spain, despite 27% unemployment, then perhaps there isnt a need (controversial)?
I completely sympathise with families who live in areas where there are no jobs. All I can suggest is that they move, things arent going to improve soon. That's reality.
Just to add, the British model isnt the one to follow here. Generous benefits create dormant communities on the edge of society. Spain needs to give greater opportunity to its people, not bigger handouts. It would be great if there could be a minimum of shelter and food provided, but given the lack of starving homeless people in Spain, despite 27% unemployment, then perhaps there isnt a need (controversial)?
#13
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Re: One reason black money will always flourish in Spain.
That's much the same as Norman Tebbit told the unemployed in Britain back in Thatcher's day. For the vast majority of them it wasn't realistic then, and it isn't now. If they have a mortgage and no hope of selling their property, or renting it either to cover the mortgage payments because nobody else in their area has the money to buy it or pay the rent, how can they up sticks and pay for housing in another area? Not to mention the small detail that housing costs in an area or country where employment opportunities are more plentiful are certain to be much higher than where they would be leaving.
Spain is almost bankrupt and has an almost bankrupt banking sector. Paying billions of euros to people to not work is not a possibility - and of course would not be accepted by Merkel, the EU or IMF - the people who really run the roost
Spain has prostituted itself to Europe for the past 30 years, taking the easy money and neglecting the chance to build sustainable high value economies in many areas of the country (Spain are not alone in their ineptitude, the rest of the world has done pretty much the same thing)
Spaniards were happy being paid £4k per month for driving a lorry and even happier to take out that credit for the second home and a brand new Audi. It was a house of cards from the start built on cheap and imaginary credit. The problem being that usually when the Spanish economy does this (every 50 years or so) they could inflate their way out of trouble, this is no longer an option.
The best thing that could happen to Spain is the Euro crashing, if that doesnt happen then Spain will continue to be second class citizens in Europe and the people will be neglected. Spanish politicains are to blame though, along with everybody who preferred to close their eyes and not face up to what was happening
Btw, I could write something similar on the UK. If the Euro was in better shape then the UK would already be bankrupt and begging for Brussels to let them in. Their finances are even worse, but they at least have a say in their own destiny. Actually scrap that, the UK bankers at least have a say, the people havent got a clue
#14
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Re: One reason black money will always flourish in Spain.
Yes I know what I say sounds bad, and uncaring, but what are the alternatives?
Spain is almost bankrupt and has an almost bankrupt banking sector. Paying billions of euros to people to not work is not a possibility - and of course would not be accepted by Merkel, the EU or IMF - the people who really run the roost
Spain has prostituted itself to Europe for the past 30 years, taking the easy money and neglecting the chance to build sustainable high value economies in many areas of the country (Spain are not alone in their ineptitude, the rest of the world has done pretty much the same thing)
Spaniards were happy being paid £4k per month for driving a lorry and even happier to take out that credit for the second home and a brand new Audi. It was a house of cards from the start built on cheap and imaginary credit. The problem being that usually when the Spanish economy does this (every 50 years or so) they could inflate their way out of trouble, this is no longer an option.
The best thing that could happen to Spain is the Euro crashing, if that doesnt happen then Spain will continue to be second class citizens in Europe and the people will be neglected. Spanish politicains are to blame though, along with everybody who preferred to close their eyes and not face up to what was happening
Btw, I could write something similar on the UK. If the Euro was in better shape then the UK would already be bankrupt and begging for Brussels to let them in. Their finances are even worse, but they at least have a say in their own destiny. Actually scrap that, the UK bankers at least have a say, the people havent got a clue
Spain is almost bankrupt and has an almost bankrupt banking sector. Paying billions of euros to people to not work is not a possibility - and of course would not be accepted by Merkel, the EU or IMF - the people who really run the roost
Spain has prostituted itself to Europe for the past 30 years, taking the easy money and neglecting the chance to build sustainable high value economies in many areas of the country (Spain are not alone in their ineptitude, the rest of the world has done pretty much the same thing)
Spaniards were happy being paid £4k per month for driving a lorry and even happier to take out that credit for the second home and a brand new Audi. It was a house of cards from the start built on cheap and imaginary credit. The problem being that usually when the Spanish economy does this (every 50 years or so) they could inflate their way out of trouble, this is no longer an option.
The best thing that could happen to Spain is the Euro crashing, if that doesnt happen then Spain will continue to be second class citizens in Europe and the people will be neglected. Spanish politicains are to blame though, along with everybody who preferred to close their eyes and not face up to what was happening
Btw, I could write something similar on the UK. If the Euro was in better shape then the UK would already be bankrupt and begging for Brussels to let them in. Their finances are even worse, but they at least have a say in their own destiny. Actually scrap that, the UK bankers at least have a say, the people havent got a clue
#15
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Re: One reason black money will always flourish in Spain.
To those people in really bad situations, they really dont care about bankers, economics or politics. None of those put food directly on the table
Spaniards are a resourceful lot and are also very proud. It is hard to get the chance to hear the real stories of how people in trouble are living their lives. People on the surface seem the same as ever