From Raw Story: http://www.rawstory.com/rs/2012/04/27/spain-to-persist-in-suicidal-austerity-policies-despite-25-unemployment-rate/
By Muriel Kane
Friday, April 27, 2012
Figures released by the Spanish government on Friday show that country with an unemployment rate of 24.4%, the highest in Europe, and a rate of over 50% among 16-24 year olds.
But despite the bad economic news, that country’s leadership appears determined to stick with the austerity program it has pursued for the last two years and has even recently announcing an increase in consumer taxes for next year.
According to the San Francisco Chronicle, “Prime Minister Mariano Rajoy passed a plan in February to make it cheaper for employers to let workers go while raising taxes and cutting spending including health care and education.”
As explained by The New York Times, the Spanish government’s hope has been that even if growth and jobs suffer from draconian budget cuts, the lower interest rates that result will keep bond investors happy. But instead, foreign capital has been fleeing the country.
Continue reading at: http://www.rawstory.com/rs/2012/04/27/spain-to-persist-in-suicidal-austerity-policies-despite-25-unemployment-rate/