Communist
24th February 2010, 03:01
Spain Engulfed by Pension Protests (http://english.aljazeera.net/news/europe/2010/02/2010223185433201595.html)
February 23, 2010, Aljazeera
The mass protests are the first ever organised by trade
unions against Zapatero's government [EPA]
Spain's debt-laden Socialist government has witnessed the
first mass protests by unions in its six years in power as
anger over a plan to raise the retirement age spilled onto
the streets.
The UGT and the CCOO, the country's two largest unions,
called for Tuesday's demonstrations against the reform in
several major cities, including Madrid, Barcelona and
Valencia.
Further demonstrations are planned in the rest of the country
up until March 6 against the plan, announced last month, to
raise the legal retirement age from 65 to 67.
The Spanish economy, the fifth largest in Europe, has been
mired in recession since the end of 2008 as the global
financial crisis hastened a correction that was already
underway in its once-buoyant property sector.
'No agreement'
The government says the pension reform, which is to be
introduced in stages over several years, aims to ensure that
the social security system remains viable amid a rapidly
aging population.
Miguel Angel Fernandez Ordonez, the governor of the Bank of
Spain, said that the measure "will provide a major boost to
the financial balance of the public pension system".
But a recent opinion poll published in the newspaper El Pais
showed that about 84 per cent of people are opposed to the
move.
The protests are the first mass street demonstrations
organised by trade unions against the government of Jose Luis
Rodriguez Zapatero, the prime minister, since it came to
power in 2004.
Zapatero has said he is seeking a "national consensus" on the
issue that would include the unions.
But Candido Mendez, the head of the UGT, said he saw "no
point of agreement" over the retirement plan.
Earlier this month, Zapatero unveiled a plan to reform
Spain's rigid labour market rules in a bid to tackle the
country's soaring unemployment, which is now close to 20 per
cent.
Last month the government also announced a programme to save
$68bn over three years in a bid to slash its public deficit
by 2013.
The move would see the deficit fall from an estimated 11.4
per cent of GDP this year to within the three per cent limit
set by the European Union for eurozone members.
'Major boost'
Speaking on Tuesday, Angel Gurria, the secretary general of
the Organisation for Economic Co-operation and Development
(OECD), backed Zapatero's measures.
Zapatero has said he is seeking a 'national consensus' on the
pensions issue [EPA]
Gurria said that the reforms, in particular the retirement
measure, were essential if Spain is to reassure nervous
financial markets that it is committed to reviving the
economy and slashing the public deficit.
"It's not only a question of responsibility, but [also a
question of] signals ... rating agencies are looking at what
we [the OECD countries] are doing," he said.
In December, the Standard & Poor's agency lowered its credit-
rating outlook on Spain to "negative" from "stable", warning
that the country faced a "prolonged" period of sluggish
economic growth.
Spain's rising debt burden has also triggered concerns that
it could follow in the footsteps of Greece, whose budget
crisis has prompted the EU to place it under unprecedented
scrutiny.
However, Jose Manuel Barroso, the European Commission
president, addressing a news conference in Madrid following
talks with Zapatero on Tuesday, voiced his "complete
confidence" in the Spanish economy despite the burgeoning
deficit.
While Gurria emphasized that "Greece and Spain are not
comparable".
_____________________________________________
February 23, 2010, Aljazeera
The mass protests are the first ever organised by trade
unions against Zapatero's government [EPA]
Spain's debt-laden Socialist government has witnessed the
first mass protests by unions in its six years in power as
anger over a plan to raise the retirement age spilled onto
the streets.
The UGT and the CCOO, the country's two largest unions,
called for Tuesday's demonstrations against the reform in
several major cities, including Madrid, Barcelona and
Valencia.
Further demonstrations are planned in the rest of the country
up until March 6 against the plan, announced last month, to
raise the legal retirement age from 65 to 67.
The Spanish economy, the fifth largest in Europe, has been
mired in recession since the end of 2008 as the global
financial crisis hastened a correction that was already
underway in its once-buoyant property sector.
'No agreement'
The government says the pension reform, which is to be
introduced in stages over several years, aims to ensure that
the social security system remains viable amid a rapidly
aging population.
Miguel Angel Fernandez Ordonez, the governor of the Bank of
Spain, said that the measure "will provide a major boost to
the financial balance of the public pension system".
But a recent opinion poll published in the newspaper El Pais
showed that about 84 per cent of people are opposed to the
move.
The protests are the first mass street demonstrations
organised by trade unions against the government of Jose Luis
Rodriguez Zapatero, the prime minister, since it came to
power in 2004.
Zapatero has said he is seeking a "national consensus" on the
issue that would include the unions.
But Candido Mendez, the head of the UGT, said he saw "no
point of agreement" over the retirement plan.
Earlier this month, Zapatero unveiled a plan to reform
Spain's rigid labour market rules in a bid to tackle the
country's soaring unemployment, which is now close to 20 per
cent.
Last month the government also announced a programme to save
$68bn over three years in a bid to slash its public deficit
by 2013.
The move would see the deficit fall from an estimated 11.4
per cent of GDP this year to within the three per cent limit
set by the European Union for eurozone members.
'Major boost'
Speaking on Tuesday, Angel Gurria, the secretary general of
the Organisation for Economic Co-operation and Development
(OECD), backed Zapatero's measures.
Zapatero has said he is seeking a 'national consensus' on the
pensions issue [EPA]
Gurria said that the reforms, in particular the retirement
measure, were essential if Spain is to reassure nervous
financial markets that it is committed to reviving the
economy and slashing the public deficit.
"It's not only a question of responsibility, but [also a
question of] signals ... rating agencies are looking at what
we [the OECD countries] are doing," he said.
In December, the Standard & Poor's agency lowered its credit-
rating outlook on Spain to "negative" from "stable", warning
that the country faced a "prolonged" period of sluggish
economic growth.
Spain's rising debt burden has also triggered concerns that
it could follow in the footsteps of Greece, whose budget
crisis has prompted the EU to place it under unprecedented
scrutiny.
However, Jose Manuel Barroso, the European Commission
president, addressing a news conference in Madrid following
talks with Zapatero on Tuesday, voiced his "complete
confidence" in the Spanish economy despite the burgeoning
deficit.
While Gurria emphasized that "Greece and Spain are not
comparable".
_____________________________________________