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You're right. Solbes made some moises about the economic model being "unsustainable" but he hasn't really done much about it. And there are rumours that he'd like to leave the government because of disagreements with Zapatero over economic policy, on which the latter doesn't know much.

Those whom the Gods wish to destroy They first make mad. -- Euripides
by Migeru (migeru at eurotrib dot com) on Wed Dec 27th, 2006 at 11:59:18 AM EST
[ Parent ]
He's done some overtures to try to invest more on research and technology but with all the investment money going to the house bubble there is no way he can succeed.

He has explained clearly that he wouldlike the house prices to stabilize and have zero growth (2 points below inflation) to get rid of the "Investment money" int he sector and the overheat....but we do nto know what would be his favourite mechanisms.. ti seems that high interest rates is all he wants.. adn at least there is no movement for a massive investment in new public houses..

Trains, public housing and technology should get priority over health-care and roads...but in Spain we love to abuse free medicine and free roads...so do not even mention a slight co-payment. This is the par of the liberal agenda I would love to see implemented...but it is not.

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Wed Dec 27th, 2006 at 12:06:17 PM EST
[ Parent ]
Interest rates impinge equally on all investment. As long as the housing bubble is perceived as more profitable than other investment, changing interest rates won't correct the problem, unless he is content to squeeze individual homebuyers. In addition, interest rates are set by the ECB, which is politically independent.

Measures that might work are: 1) cracking down on absentee owners, taxing empty properties; 2) cracking down on aggressive lending, with "good regulation"; 3) public investment in housing.

But these are unpalatable to orthodox economists like Solbes, not because they don't work but because they entail government intervention.

Those whom the Gods wish to destroy They first make mad. -- Euripides

by Migeru (migeru at eurotrib dot com) on Wed Dec 27th, 2006 at 12:47:10 PM EST
[ Parent ]
Trains, public housing and technology should get priority over health-care and roads...but in Spain we love to abuse free medicine and free roads...so do not even mention a slight co-payment. This is the par of the liberal agenda I would love to see implemented...but it is not.

Didn't Catalunya introduce a per visit fee for the regional health service?

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Thu Dec 28th, 2006 at 12:24:04 AM EST
[ Parent ]
Yes, it is the only one, and also for pharmaceuticals. But elder people are not included so elder people are the primary users of condoms...or so it was two years ago....maybe they already solved this little hole.. but anthibiotiucs free for all the family is still a must.

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Thu Dec 28th, 2006 at 11:40:50 AM EST
[ Parent ]

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