Sorry, But Spain's Razor Thin Austerity Vote 'Victory' Will Soon Prove Itself A Failure

Spain Fail Bull

Spain just barely passed a 15 billion euro austerity plan yesterday, by a single vote. The results were 169 votes for the passage, with 168 votes against. There were also 13 abstentions.

Technically, this austerity plan is now a go, but was the razor thin victory margin essentially a failure?

Problem is, Spain doesn’t just need to pass its austerity package, but it will need to implement it as well.

Given enormous visible opposition as shown by the extremely tight vote, we should expect substantial public push back which could prevent the measures from actually happening.

For example, the New York Times has already reported that the nation’s two largest unions have announced that they’ll strike should austerity measures be ‘hurtful’ of labour market rules. Which means they’ll strike for sure. Civil servants are also expected to strike next month, angered by cuts to their wages.

The tight vote makes actual implementation of the passed measures doubtful.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at