Spanish sovereign debt - There was a time when the fifth largest economy in the European region grew real big back in the industry actually, where up to 16% of GDP derived from construction activities. Rear high profit margins, there is a growing enthusiasm in the sector led to excessive movement, especially in the residential segment. As long as the proportion of left glut of housing construction by collecting up to 30%! Approaching the U.S. subprime crisis, as the Spanish housing bubble began to go bankrupt in the general masses take the hit. Increase in spanish sovereign debt rocked the basis of state finances, solvency will come. As the government takes damage control mode, a few steps toughest, most big impression on the masses and the suffering that followed.
In fiscal year 2010, spanish sovereign debt begin with Spain saw the unemployment rate over 20%, the highest in Europe. To add a class of crimes, the country once known for the work to use the market began to reflect major changes in the law may mean limiting the role of unions and collective bargaining, the greater power in the organization, reduction policies more easily, and a smaller compensation package. Amid pressure from various international agencies and institutions, Spain introduced a bill to raise the retirement age of 65-67 years to defer payment of pension benefits. Meanwhile, the Organization for Economic Cooperation and Development (OECD) stated that it would not be of sufficient size and further increases are needed. He has advised the government to reduce pension benefits with a smaller pension payments. Current practice is to consider the last 15 years of service as the basis for the calculation of basic salary. spanish sovereign debt.According to the OECD, this period should be extended to achieve an average rate lower. Among the changes proposed tighter controls on spending in each area, VAT on goods is more, the new environmental tax on water use, and much more. While Spain seems to attract the deficit target in the medium term, largely at the expense of real purchasing power of people in the short term.
