The Fiscal Compact: doubts creeping in across Europe-Spain defies Brussels

[PaddyJoe]

This is when things start getting interesting. Spain has told the EU to take a running jump

Spain on Friday threw down the gauntlet to the European Commission by announcing a deficit target for this year of 5.8 percent of GDP, 1.4 points above the 4.4 percent goal previously agreed with Brussels

Faced with the prospects of finding budget savings of 44 billion euros to meet the 4.4-percent target at a time when the country is heading for recession and amid growing social unrest about cutbacks and drastic reforms to the labor market that makes it cheaper and easier to sack workers, Prime Minister Mariano Rajoy had pledged a “sensible” budget

http://elpais.com/elpais/2012/03/02/...80_137998.html

[C. Flower]

This is when things start getting interesting. Spain has told the EU to take a running jump


http://elpais.com/elpais/2012/03/02/...80_137998.html

As People Korps pointed out, the French elections are very likely going to put an end to Sarkozy and a Hollande government seems not disposed to go for austerity.

The Irish Government may find itself marginalised before to long in sticking to the hair shirt and flogging (the poor) solution.

[TotalMayhem]

a Hollande government seems not disposed to go for austerity.

Hahaha ... like our muppets were disposed to renegotiate debt and interest rates? Good un, CF.

[C. Flower]

Hahaha ... like our muppets were disposed to renegotiate debt and interest rates? Good un, CF.

Yes.... but France is not Ireland...

[Greengoddess]

As People Korps pointed out, the French elections are very likely going to put an end to Sarkozy and a Hollande government seems not disposed to go for austerity.

The Irish Government may find itself marginalised before to long in sticking to the hair shirt and flogging (the poor) solution.

It seems obvious that we eventually have to remove it . It is a political treaty that will fall apart. Neither will it save Merkel. It's just a question of when. My feeling is when it becomes clear that it's threat to us no longer exists. The treaty itself is a kind of craziness so the solution will be equally so.

[Sam Lord]

As People Korps pointed out, the French elections are very likely going to put an end to Sarkozy ....

Sarkozy was an hour late for an EU meeting yesterday as he ended up beseiged in a cafe somewhere in the Basque region of France with eggs and stones being rained down on his entourage. He was not best pleased by all accounts, saying that such things should not occur in a "civilised society".

[concernedparent]

Sarkozy was an hour late for an EU meeting yesterday as he ended up beseiged in a cafe somewhere in the Basque region of France with eggs and stones being rained down on his entourage. He was not best pleased by all accounts, saying that such things should not occur in a "civilised society".

And still it does not occur to the idiots that they are the architects of their own misfortune.

[C. Flower]

Sarkozy was an hour late for an EU meeting yesterday as he ended up beseiged in a cafe somewhere in the Basque region of France with eggs and stones being rained down on his entourage. He was not best pleased by all accounts, saying that such things should not occur in a "civilised society".

Eggs and flour would make a nice crepe out of him.

[Ah Well]

Eggs and flour would make a nice crepe out of him.

Tar and feathers would be better again

[disability student]

This is when things start getting interesting. Spain has told the EU to take a running jump


http://elpais.com/elpais/2012/03/02/...80_137998.html

As you can see the word 'sensible' which the Spanish PM uttered. Since our last four successive budgets haven't been sensible at all and more unreal & pure nonsensical with far deeper cuts, which is still damaging to our economy on a huge scale.

None of our Government ministers have realised this nor commented on. Their words were ' lifestyle' or any other choice as they were so so out of touch with the ordinary people -the electorate.

Govt is afraid to touch CPA as there are a lot of vested interests there. Once CPA is gone as there will be nothing left for them but to vote against FCT.

Remember Lucinda said they were concerned about the investors- business people, banks. Their mindset revealed that they are only interested in that aspect but no interest nor concern about the people, who plied and paid their taxes all their life.

[disability student]

Once the EU pursued their policies of austerity (Hi-Low programme) and other programmes which would damage and perhaps destroy & change the political landscape. These EU bureaucrats don't give one fig about Kenny nor Noonan as they only want get their money back.

Look at Greece and Italian politics, both governments were changed and replaced with Economic specialist of their own choice once they realised their plans wasn't there for taking.

I could see a breakup of the European countries and revert back to their monetary zones as they couldn't control theirs as before. The EU was supposed to all about sharing the burden and standing up for each other. That's not happening right now as some EU countries are voicing their concerns about the German/French axis without their consultation whatsoever.

[morticia]

This is when things start getting interesting. Spain has told the EU to take a running jump

Yes, this was reported in the Telegraph a few days ago; think I stuck the link in another thread.

But there's more. I was listening to 2FM while working away yesterday morning and Colm Hayes was saying he knew people in Spain who were supposed to be being paid by the Government, invoices etc, and were being told to hold them indefinitely as the Government couldn't afford to pay them right now.

Meanwhile, a friend of mine was saying he knows a few Irish working out there who are saying Spain is falling apart and in desperate need of a bailout.

Perhaps our little referendum might turn out to be the least of Frau Merkel's problems. However, I think Rajoy will probably sign it nonetheless. Unlike us northern European Irish types, though, he probably has zilcho intention of actually trying to implement it properly. We could learn from this attitude, could buy us a few more years cheapish money from the ESM, methinks!

[PaddyJoe]

Yes, this was reported in the Telegraph a few days ago; think I stuck the link in another thread.

But there's more. I was listening to 2FM while working away yesterday morning and Colm Hayes was saying he knew people in Spain who were supposed to be being paid by the Government, invoices etc, and were being told to hold them indefinitely as the Government couldn't afford to pay them right now.

Meanwhile, a friend of mine was saying he knows a few Irish working out there who are saying Spain is falling apart and in desperate need of a bailout.

Perhaps our little referendum might turn out to be the least of Frau Merkel's problems. However, I think Rajoy will probably sign it nonetheless. Unlike us northern European Irish types, though, he probably has zilcho intention of actually trying to implement it properly. We could learn from this attitude, could buy us a few more years cheapish money from the ESM, methinks!

One of the main problems in Spain is that the regional governments are in very deep trouble financially. The student protests in Valencia last week started off as one secondary school protesting against the heating being turned off because its budget ran out.
Valencia itself was going to have to declare bankruptcy at the end of last year until it was bailed out by bank loans backed by guarantees from the central government in Madrid.
Several other regional governments are close running out of cash.

[morticia]

http://www.telegraph.co.uk/finance/f...d-Cameron.html

David Cameron trying to take credit for anti-austerity push (12 signatories, including Spain). Oh, the irony. Given that he ran for election in the UK on an austerity platform and all that. However, nothing like a good U turn if you actually realize you're wrong, I suppose.

http://www.telegraph.co.uk/finance/f...programme.html

Meanwhile, UK banks borrow 22bn from ECB.... huh?? What's wrong with the BoE?? Or have they been told to unload EZ bonds where they can do least harm??

[morticia]

http://www.guardian.co.uk/business/2...uts?intcmp=239

Cold feet developing all over Europe it seems. The Dutch have just declared they'll be running a 4.5% deficit. Along with Rajoy and his sensible budget.

Perhaps Europe has reached a consensus; sign the darn thing to keep everyone happy, then resolutely ignore it. Ah sure, rules were made to be broken. Another good reason to keep stupid ones out of the constitution... what was Maire Whelan thinking??