Submission

by afew Fri Jul 13th, 2012 at 04:24:53 AM EST

Eurointelligence news briefing this morning:

In an interview with Frankfurter Allgemeine Zeitung Luis de Guindos says the Spanish government inspired itself from the reforms Germany underwent under Gerhard Schröder. “The Spanish economy needs the medicine that Germany had to take 10 years ago”, Spains economy minister explained. “The German reforms of the labour market, the social security as well as the great moderation with the salaries are examples. Spain is doing all that now even faster and more intensively.”

Windos didn't need to suddenly see the light -- the ideology is no doubt tattooed into his source code -- but this submission reveals the real balance of power after the Council that was supposed to have been a defeat for Merkel etc.

Neoliberal "reform" wins. Even faster and more intensively.

Spain should take Germany on at football, not wrestling.

Submission | 49 comments (49 topical, 0 editorial, 0 hidden)

Re: Submission (none / 1)

For some in power, the neo-feudalism as current in Germany is a good thing, no? (Of course, until the peasants revolt.)

If Spain can privatize time-sharing minimum wage jobs, and boost employment with mini-jobs (€400/mo.), they can make internal devaluation look positive.

All while keeping the subservient subservient. Win-win, no??

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Fri Jul 13th, 2012 at 04:46:13 AM EST

Minijobs (none / 1)

Hey, €400/mo was Zapatero's subsidy for the long-term unemployed.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 04:50:49 AM EST
[ Parent ]

Re: Minijobs (none / 0)

In Germany, long-term unemployed get Ein Euro Jobs (€1/hr) in addition to Hartz 4 (€397), picking butts and kau gummi off the streets, unless I'm oversimplifying a complex system.

Way to go, Social Society.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Fri Jul 13th, 2012 at 05:16:46 AM EST
[ Parent ]

Re: Minijobs (none / 0)

Well, of course Rajoy either already has or will soon abolish the €400. It was only for 6 months anyway. After that, you're on your own.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 05:23:38 AM EST
[ Parent ]

Re: Minijobs (none / 1)

That is only 20% less than the minimum WAGE in Portugal (495, I think).

Long-term unemployment (basic income) is 190.

by cagatacos on Fri Jul 13th, 2012 at 07:03:55 AM EST
[ Parent ]

Re: Minijobs (none / 1)

«That is only 20% less than the minimum WAGE in Portugal (495, I think)»

To be exact it was 420 euros, so it is or was only 14,14% less. Still insufficient in the main active regions, but still a good help.

res humà m'és aliè

by Antoni Jaume on Fri Jul 13th, 2012 at 01:27:43 PM EST
[ Parent ]

Re: Submission (none / 0)

In other news... Italy appoints new finance minister to replace Monti (11 July 2012)

Italian Prime Minister Mario Monti will step down as finance minister and the current deputy minister Vittorio Grilli will take his place, the government said on Wednesday.
The nomination is to be confirmed at a formal ceremony later Wednesday, it said, adding that a new committee to coordinate economic and financial policy would also be set up under Monti's direct supervision.
The committee will include Monti, Grilli, Economic Development Minister Corrado Passera and Bank of Italy governor Ignazio Visco.

Merkel über alle.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 04:52:32 AM EST

Re: Submission (none / 1)

Is it a victory for Merkel or for the conventional wisdom? This is no different to the thing we've been talking about here since we started: the solution to all problems is always to kick the lower/working class.

by Colman (colman at eurotrib.com) on Fri Jul 13th, 2012 at 05:59:30 AM EST

Re: Submission (none / 0)

I'm still predicting Merkel will be reelected in 2017.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 06:00:24 AM EST
[ Parent ]

Re: Submission (3.50 / 2)

Well, that would at least mean that we'd still be having elections in 2017. The way things are going, it's not even sure.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Fri Jul 13th, 2012 at 06:06:23 AM EST
[ Parent ]

Re: Submission (4.00 / 4)

Don't be silly, any self-respecting dictatorship holds elections these days.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 06:19:53 AM EST
[ Parent ]

Re: Submission (none / 1)

The CW, in my view. That's why I said "neoliberal 'reform' wins".

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jul 13th, 2012 at 09:16:51 AM EST
[ Parent ]

Re: Submission (none / 1)

Spain is making economic suicide. Compared to them Greece is a walk in a park.

by kjr63 on Fri Jul 13th, 2012 at 06:08:27 AM EST

Re: Submission (4.00 / 5)

We're talking about destroying 10% of the EU, rather than 1%. And after Spain comes Italy. Then it's game over. And Merkel, Juncker, Trichet, Draghi, will never know what hit them.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 06:19:19 AM EST
[ Parent ]

Re: Submission (none / 0)

Finnish "music":

http://www.youtube.com/watch?v=MsETipt0gvQ

The chorus went in the original "..like a thief you stole my heart, eviva Espana..."

Now it goes "..like a thief you stole my money, eviva Espana..."

by kjr63 on Fri Jul 13th, 2012 at 01:15:50 PM EST
[ Parent ]

Re: Submission (4.00 / 8)

To trust my twitter feed, the Spanish government just committed suicide. They have the workers in all branches of government demonstrating all over Madrid. Including off-duty police and firefighters.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 06:37:28 AM EST
[ Parent ]

Re: Submission (4.00 / 2)

And still nothing from BBC -> World -> Europe.

Although we do learn that Carrefour sales are down, and that Moody's has cut Italy's rating.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Jul 13th, 2012 at 06:48:36 AM EST
[ Parent ]

Re: Submission (4.00 / 3)

According to German sources, Rajoy had to escape from Parliament via a back door. But they say:

Die Beamten müssen aufs Weihnachtsgeld verzichten.

Is this what really happened, or did the German writer introduce his own cultural assumptions? Spain has 14 salaries, the two extra being Christmas and in July, ~~to celebrate Franco starting the civil war~~ for the summer. If they cut the latter, people would be losing the money that they expected to get right now making them really angry.

by gk (g k quattro due due sette "at" gmail.com) on Fri Jul 13th, 2012 at 07:09:01 AM EST
[ Parent ]

Re: Submission (4.00 / 3)

They had already received the June extra payment, so if the government wanted to cut they had no choice but to do it in December.

I have no doubt that, had the bailout happened in May, they would have cut the June payment.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 07:24:50 AM EST
[ Parent ]

Re: Submission (4.00 / 4)

It's basically a 7% wage cut. The fact that people get paid 14 multiples of a basic amount has nothing to do with "money for nothing in June and December" as the German commentariat likes to present the Greek case, for instance.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 07:26:18 AM EST
[ Parent ]

Re: Submission (4.00 / 4)

As opposed to the Germans, who presumably really do get paid extra for doing nothing in December?

by gk (g k quattro due due sette "at" gmail.com) on Fri Jul 13th, 2012 at 07:28:45 AM EST
[ Parent ]

Re: Submission (none / 1)

I don't know, ask Bild.de

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 08:47:46 AM EST
[ Parent ]

Re: Submission (4.00 / 3)

We also have something like this, and it is a political clusterfcuk. It was cut for civil servants, but the constitutional court overruled it (on the principle of equality), so they are thinking in cutting it for everybody (vacation and Christmas salary).

For me this represents yet another example that we are very far from cultural similarity. For people not from the South this is being narrated as a BONUS. When it is just a way to distribute the yearly salary (a very stupid way, but that is another discussion). People receive 14 payments a year (instead of 12, or 52 like in some places), that is it. "Lazy" southerners (who BTW, on average work more hours than northerners) have also "bonuses" became the narrative.

by cagatacos on Fri Jul 13th, 2012 at 07:33:37 AM EST
[ Parent ]

Re: Submission (4.00 / 7)

As I keep pointing out, Germany has a Christmas "bonus" as well, so it's hard to make it into a North vs. South issue. Even Switzerland has it...

by gk (g k quattro due due sette "at" gmail.com) on Fri Jul 13th, 2012 at 07:55:15 AM EST
[ Parent ]

Re: Submission (4.00 / 5)

So? They have 80% of GDP of public debt and that never stopped them lecturing anyone.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Fri Jul 13th, 2012 at 08:00:06 AM EST
[ Parent ]

Re: Submission (4.00 / 3)

True, but the average German (like the average citizen of any other country) doesn't have any idea about that. On the other hand, even they should be able to figure out that they get an additional paycheck for "doing nothing"....

by gk (g k quattro due due sette "at" gmail.com) on Fri Jul 13th, 2012 at 08:04:23 AM EST
[ Parent ]

Re: Submission (4.00 / 2)

Or being the second in breaking the stability and growth pact deficit of 3% (Portugal was a first on that)

by cagatacos on Fri Jul 13th, 2012 at 08:35:24 AM EST
[ Parent ]

Re: Submission (none / 1)

France too has a 13th month paid before Christmas.

It is in fact deferred salary that is helpful to employers -- otherwise they would have to advance 1/12 of monthly salary each month, which would arguably be much more in the interest of employees.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jul 13th, 2012 at 09:23:58 AM EST
[ Parent ]

Re: Submission (none / 1)

Many work contracts in Germany say that the employer can reduce the 13th (or 14th) pay in bad years. If it isn't in the wage-agreement, it is a "voluntary payment". I believe this was the case in all my contracts. So, "christmas bonus gone" is something that sucks, but nothing unheard of for an average German newspaper reader.

by Katrin on Fri Jul 13th, 2012 at 09:49:10 AM EST
[ Parent ]

Re: Submission (none / 1)

And somehow the bankers always get their year-end bonuses.

by Upstate NY on Fri Jul 13th, 2012 at 10:47:21 AM EST
[ Parent ]

Re: Submission (none / 1)

«It is in fact deferred salary that is helpful to employers»

It is also a way workers save for the season festivities.

res humà m'és aliè

by Antoni Jaume on Fri Jul 13th, 2012 at 01:23:06 PM EST
[ Parent ]

Re: Submission (none / 0)

Christmas and New Year sales are going to make a great contribution to employment and GDP...

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 01:27:33 PM EST
[ Parent ]

Re: Submission (none / 0)

Very true. The season sales will be disastrous.

res humà m'és aliè

by Antoni Jaume on Fri Jul 13th, 2012 at 01:29:06 PM EST
[ Parent ]

Re: Submission (4.00 / 2)

Since civil servants are non-Ricardian they are starting to cut down on spending right now, cancelling vacation plans because they need to save up a month's worth of income.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 01:35:42 PM EST
[ Parent ]

Re: Submission (none / 1)

As of 13:00, there's been no mention at TAZ or SDZ (one of Germany's biggest papers), nor Spiggle at 13:25.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Fri Jul 13th, 2012 at 07:27:21 AM EST
[ Parent ]

Re: Submission (none / 1)

@GlobalRevLive

Protests agnst government in Madrid start 9pm ‪#FF‬ hashtags ‪#QueSeJodan‬ ‪#VamosAGenova‬ ‪#Congreso‬ live coverage http://www.globalrevolution.tv ‪#occupy

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 08:46:02 AM EST
[ Parent ]

Re: Submission (none / 1)

ElMundo.es: Funcionarios de Moncloa abuchean al Gobierno en el Consejo de Ministros (13/07/2012)

Los funcionarios han recorrido todos los edificios del complejo de La Moncloa con pitos y pancartas y han recibido con un abucheo y una intensa pitada a los ministros que llegaban del palacio de La Zarzuela tras reunirse con el Rey para iniciar el Consejo de Ministros ejecutivo.

Civil servants at Moncloa [the PM's residence] heckle the Government before the council of ministers (13/07/2012)

The civil servants have gone through all the buildings in the La Moncloa complex with whistles and banners and have received the ministers with boos and intense whistling as they arrived from the Zarzuela palace [King's residence] after meeting the King, to begin the executive Council of Ministers.

(See yesterday)

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 09:29:53 AM EST
[ Parent ]

Re: Submission (4.00 / 2)

Uh, how so? Have you looked at the Greek program? GDP down 22%, budget cuts of 34%, looking for another 11.5 billion cuts as we speak. Budget is at under 100 billion and still looking for 11.5 in cuts.

by Upstate NY on Fri Jul 13th, 2012 at 10:44:51 AM EST
[ Parent ]

Re: Submission Football (4.00 / 2)

As i recall, Spain did meet powerhouse Germany in the World Cup semi-final in 2010. Spain's defense was torn asunder by the quantitative dribbling of Klaus Regling (most of which fell from his chin to his shirt), and the superb combination passing of Weidmann and Assmussen, which led to the crisis being averted.

Wait. the crisis wasn't averted, Germany couldn't score, not counting the shock therapy, even as it went most of the way through the second half.

Was it a forceful header by Carlos Puyols who put Merkel's face in her hands? 1-0 Spain at the end.

Then, there was the long-awaited rematch in the finals of the Euro Cup 2012, where Germany finally put an end to Spain's sovereignty. No wait. That was just a dream. Germany's Kokopelli was ended by Mario's Balotelli... Italy 2-0

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Fri Jul 13th, 2012 at 06:08:58 AM EST

Re: Submission Football (4.00 / 2)

«Was it a forceful header by Carlos Puyols»

Carles Puyol, we non-castillian-speakers are rather touchy with the spelling of our names.

res humà m'és aliè

by Antoni Jaume on Fri Jul 13th, 2012 at 01:20:15 PM EST
[ Parent ]

Re: Submission Football (none / 0)

We here, meaning me, hang our heads in shame at the affront, and thanks for pointing out the mistake.

i hope it is uncontested that The Header, the very strong header, did have the desired effect, which on this side of the border, hurt.

Still, he is my long-haired brother.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Fri Jul 13th, 2012 at 04:33:16 PM EST
[ Parent ]

Re: Submission (4.00 / 2)

Spain should take Germany on at football, not wrestling.

Maybe Spain should just drop 1€ into Mount Doom.

My preciousssss!

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 10:03:34 AM EST

Re: Submission (4.00 / 2)

They could kidnap Draghi and pay off the debt using the gold bricks he "generates" every morning...

by Metatone (metatone [a|t] gmail (dot) com) on Fri Jul 13th, 2012 at 11:32:34 AM EST
[ Parent ]

Some bankers shit in the bushes (4.00 / 2)

The Local - Workers find gold bars in Swiss bushes

Two council workers in Switzerland could be in for an unexpected windfall after finding gold ingots worth 124,000 francs ($126,000) behind a bush, it was reported on Thursday.
document.write('');
"I saw a package wrapped in white tissue paper, with lots of adhesive tape around it. It looked like a packet of drugs," said Jean-Marc Wenger, from the Swiss town of Klingnau in the north of the country, near the German border.
It was only when the men -- who were out grass cutting -- opened the mysterious package on June 28 that they discovered an undisclosed number of gold bars weighing 50-100 grams each, some 2.5 kilograms in total, ATS said.
But with no markings on the ingots and no reported thefts, police remain puzzled about why the haul was left behind a bush.

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jul 13th, 2012 at 03:46:01 PM EST
[ Parent ]

Re: Submission (4.00 / 2)

These people really are shameless: ECB Weidmann: Urge Spain to Take Bailout for Country, Not Just Banks -Report (Jul 13, 2012)

The Spanish government should take a bailout for the country as a whole, not just its embattled banks, as this would be well-received in the bond markets, European Central Bank Governing Council member Jens Weidmann argued in a newspaper interview pre-released Friday.
...
Spain has requested a bailout for its ailing banking sector of 100 billion euros ($122.39 billion). Unlike with other countries that have received assistance, aid to Spain isn't tied to reform conditions for the whole economy, but rather only for the banks.
Mr. Weidmann said more might be well-received. "It would also have a positive effect on the bond market, if investors were to see that conditions of the aid program went beyond the bank sector," he argued.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 03:30:29 PM EST

Re: Submission (none / 0)

WTF?

Has he even noticed what has happened elsewhere?

by Metatone (metatone [a|t] gmail (dot) com) on Fri Jul 13th, 2012 at 05:29:50 PM EST
[ Parent ]

Re: Submission (none / 1)

This is in Börsenzeitung. They probably haven't either.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa

by Migeru (migeru at eurotrib dot com) on Fri Jul 13th, 2012 at 05:45:19 PM EST
[ Parent ]

Re: Submission (4.00 / 3)

Metatone:

what has happened elsewhere?

I believe German creditors got their money back? Or am I misunderstanding the meaning of "rescue"?

by afew (afew(a in a circle)eurotrib_dot_com) on Sat Jul 14th, 2012 at 02:10:32 AM EST
[ Parent ]

Deus Vult! (none / 0)

Gott will es!

Von überall könnte das Volk, Urbrut alles Undemokratischen, Zelle des Terrors, über die gewählten Hüter von Wachstum und Wohlstand® kommen. - flatter

by generic on Sat Jul 14th, 2012 at 05:58:14 AM EST
[ Parent ]

Submission | 49 comments (49 topical, 0 editorial, 0 hidden)

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