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Spanish Central Bank President Slams System. by michael mifsud

Spanish Central Bank President Slams System. by
Article Posted: 05/24/2011
Article Views: 295
Articles Written: 73
Word Count: 1134
Article Votes: 0
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Spanish Central Bank President Slams System.

Business,Current Affairs,Small Business

The President of the Central Bank of Spain addressed the media on Monday the 24th. May 2012 with a hard hitting speech on the harshness of the labour controls which terrified the business world. With uemployment almost a joke, the background bureaucracy and quasi communistic labour courts, have caused a vast amount of small and medium sized businesses to close shop. The Union movements personified in two outmoded public representatives who appear to have too much media time for a modern democracy, attempts to justify the dreaded labour courts that ruin any employer unlucky to get tangled up with them. Always in favour of the employee, however mendacious the claims, the sentences are but a mere aspect of the unconstitutional levying of what is called transmission salaries which are charged to the very end of the judicial process and which can take anything up to a year if the employer is stupid enough to attempt to fight what is tantamount to violation of human rights. It is reasonable to suppose that the unsympathetic and badly organized courts have caused not only the closure and dismissal of a vast amount of employees, but the bankruptcy and possible suicide of a number of victims whose homes or meagre assets have been seized.

The labour government is ruled by the extreme left wingers including the union diehards who appear from their constant media presence and threats, to classify employers as class enemies in accordance with antiquated concepts of social rights. Even the previous labour leader and President of Spain, Mr. Felipe Gonzalez, accused them of living in a time bubble. The power to move masses to demonstrations and strikes is out of context with respect to their relatively low, fully paid up memberships even if they obtain direct Government subsidies to carry out their work. Recent general strikes however, have not come up to their expectations and it is a well understood fact in academic circles that their hey days are over. Meanwhile however, unless public institutional figures like the President of the Central Bank come out of their closets and attack the system, it is unlikely that much will change and employment even now, still rises way out of control with no guarantee that Government can maintain all its victims.

The ex President of the Nation, Mr, Zapatero recently brought in the army to prevent the crippling air control strikers from causing undue damage to Spain´s only real export, which is tourism. Despite the severe measure, the nation, as a whole applauded the act but it underlined just how destructive the labour movement is in a country now facing potential economic intervention. The President who was obviously very dependent on left wing support, announced a packet of measures geared to modify union abuse and system victimisation of employers but had no intention of changing anything for fear of the dreaded left wingers crippling whatever little was left. Despite constant reminders of the new extremely belated laws, they were not officially activated and most employers, terrified of the current threats to their investments, held fire. The present rally round the ex Opposition and right wing party, Partido Popular, headed by Mr. Rajoy, showed in the municipal elections, the demise of the labour Government and their affiliate left wingers. Demands for an early general election were met with defiance by the then ruling socialist party and it was feared that meanwhile, due to the inadequacy of the ruling system, that unemployment could bring the country to its knees. There appeared to be no other way out of the conundrum other than by the removal of all labour restrictions with the right to hire and fire, decrease in astonishingly high social security contributions, removal of destructive EEC health and safety regulations being utilised as instruments of crippling indirect taxation by trigger happy inspectors, despite the clearly outlined preamble to the legislation which attempts to protect the small employer. Bureaucratic intervention in property market values and abusive regular bank account direct intervention with smash and grab embargoes, which are causing bankruptcies through interference with planned cashflows, show up the dislike and distrust the state has for its most important sector - the small and medium industries.

Spain has suffered badly under the politicians of most parties, but particularly under Labour which has been stricken with corruption on a scale which has denied European economic support the pathway to a genuine welfare state that could guarantee family security. Spain has the worst record of investment in family issues.

The left wing elements in the power structure have misled workers with respect to where the employment failure lies, accusing the object of their studies distrust, (the ever suffering and rejected small and medium sized employers), of being disloyal. At no point have the labour institutions, including the Ministry, ever accepted responsibility for creating the worst unemployment in European history in modern times. Ironically, they continued instead, to accuse Government corrective policies for the crippling results, despite these not having been implemented at the time.

The young, caught in this senseless crossfire of amateur economics, demonstrated for the first time with encampments in various city centres, with a nation crossing its fingers that the harsh political elements did not bring the security forces in and create the most dangerous confrontations any European nation could have possibly contemplated.

Since this article was written, the President of the Central Bank of Spain has resigned earlier than expected and refuses to discuss many aspects of the Banking system which is in tatters. The President of the largest bank of Spain Bankia has also resigned amid a public demand for details about what has driven the bank to collapse has been met with stony silence "in the interests of Spain". Despite public outcry against the massive refinancing of what is now considered a black hole, it has gone ahead much to Europe´s disgust.

Since this article was written the Chairman of the Central Bank has also resigned and an incredibly speculative massive refinancing of the same bank among others, faces the horrified nation out to prevent it all cost. The President and ex President of the Andalusian province are before the Courts on charges of deviation of EEC funds originally intended to kick start employment with aid to small companies.Much appears to have been lost along the way and some spent on such things like early retirement for friends and neighbours. The director of employment himself faces accusations of throwing money around in parties, drink and drugs. The question now is whether the new President Rajoy is capable of creating an effective Government capable of slashing its overwhelming cost to the nation as a matter of priority.

Related Articles - labour laws, partido socialista español, european employment, partido popular, spain, unemployment in spain, labour courts, employers in spain,

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