Furthermore, the protests came on the eve of Rajoy's budget cut announcements. On March 30th Rajoy unveiled plans for the largest budget cuts since Spain's return to democracy in 1978. Rajoy's promised deficit reduction of 3.2% of the GDP would be the the largest since 1980. In order to avoid succumbing to Europe's current debt crisis, Rajoy is risking a deeper recession that would be catastrophic to a nation already in a financial quandary. The majority of the budget cuts are expected to come from tweaking of loopholes of tax exemptions for various corporations and households as well has a multitude of cuts in spending by the central government, primarily in healthcare and education.
Questions for the class:
1) Was there any purpose for the general strike on Thursday? Did it actually accomplish anything? How do you think American would reply to a 23% unemployment rate and an ineffective government?
2) How will Rajoy's budget cuts affect the economy? Is Rajoy jeopardizing the Spanish economy simply to appease the EU?
http://www.nytimes.com/2012/03/30/world/europe/spain-hobbled-by-general-strike.html
http://www.bloomberg.com/news/2012-03-29/rajoy-to-unveil-deepest-spanish-budget-cuts-in-30-years.html