The Daily Telegraph
May 28, 2010
- A d v e r t i s e m e n t
Its glaring lack of political solidarity is the latest sign of rising resistance to deflation policies across the eurozone.
Prime minister Jose Luis Zapatero had to rely on the abstention of Catalan nationalists to push through public sector wage cuts of 5pc this year and a freeze in 2011.
The 1930s-style pay squeeze was effectively imposed upon Spain by Brussels as a quid pro quo for the EU’s €750bn “shield” for eurozone debtors. It is a bitter climb-down for a workers party that vowed to resist salary cuts. Public sector unions have called a strike on June 8 to protest an act of “ultimate aggression” against the people.
The conservatives voted against the measures, prompting a fiery rebuke from finance minister Elena Salgado. “Unpatriotic, irresponsible, and hardly very European: one day they will pay for this,” she said.
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