Spain continues to be a basket case:- All the PP-controlled autonomous communities wanted to file a petition with the Executive branch to postpone their repayments of some $27 billion borrowed from the central government because of “liquidity problems.” The central government promptly rejected this motion. Implicit in the PP’s request is an accusation that the opposing PSOE party failed to keep accurate tabs on municipal finances before losing control of many of these regions in May’s elections.
– ABC reports that the PP is also set to force regions to adopt a balanced-budget amendment at a meeting of the Council of Fiscal and Financial Politics tomorrow.
– The central government (controlled by the PSOE) wants to reduce unemployment by 14.5% by sending 600,000 youths back to school and paying them 400 euros per month. This proposal would cost the government $347 million monthly ($4.17 billion yearly). Youth unemployment has reached close to 50% in Spain.
– The “indignados” are at it again, now with support from Nobel laureate Joseph Stiglitz. The economics professor showed up at a kind of indignado conference, held yesterday in Madrid. While giving a speech, he touted the need for market regulation as well as the “revitalizing energy” of the protestors, instructing them, “not to replace bad ideas with the absence of ideas but rather with good ideas.” The young protestors just completed a 34-day march to the capital, with dozens still camped out in front of Congress.