This weekend, the finance ministers of the Eurozone have decided to bail out the Spanish banks. It is not about ‘saving Europe’, if you would believe the commentators, but it is all about saving the profit of the bankers who are the actual ones who had organised the real estate scam.
The people of Spain will pay this rescue of capital twice, as the state has absorbed the debt of the financial institutions and thus becoming the guarantor of the European plan. These are 100 Billions of Euros which will not serve the households, the small and medium enterprises to relaunch the Spanish economy. These are 100 Billion which interests’ serves again the speculation.
Although the government affirms to monitor closely the steps and conditions of this bailout, we know from experience that the aid for banks don’t develop useful products and deepen the impact of the crisis. The government of Rajoy thus is going to indebt Spain even more and will increase its deficit. This means 2.000 Euros per person that the Spanish will pay through the new budget cuts, the raise of taxes and the reduction of unemployment benefits. All this will bear the same effects as the raise of the retirement age, the reduction of pension levels, the reduction of civil servants and of privatisation. In other words this means: economic recession and social regression. Thus it is about a new illegitimate debt.
For the EL the real solution lies in the creation of public banks exclusively reserved for financing the economy, social development and ecological transition on a national and European level. It lies equally in a large-scale fiscal reform imposing more on high revenues and fighting against fiscal evasion.
With this plan we can stimulate the economy developing public services, launching a programme of job creation and therefore construct another model of basic social development, the ecological transition and the democratic control of the economy.
Party of the European Left
Monday, 11th of June 2012