The cuts are in addition to those announced in the 2012 State Budget last week and were announced by a press release today.
Spanish Government Announce Immediate €10 Billion Cut in Health and Education
Spanish Prime Minister Mariano Rajoy

The Spanish Government has today, Monday, announced a 10 billion € cut in spending on Health and Education in a press release.

It came despite the fact that today was a Bank Holiday in six regions including Cataluña and Valencia, and no member of the cabinet appeared to present the cut which was not contemplated in the 2012 State Budget announced last week.

The Prime Minister, Mariano Rajoy, met on Monday with his Health and Education Ministers, Ana Mato and José Ignacio Wert, to prepare the details of the reforms.
The Government wants to save more than 10 billion from the two ministries.

The Moncloa Palace press release explained that this new cut would have an annual character and be added to the cut of 27.3 billion € cut in public spending announced in the 2012 budget last week. The cabinet speaks of the intention to achieve ‘better rationalisation, eliminate duplicate services and improve efficiency in the two large public services’.

The changes start almost immediately this month.

On a more party political point, statements have come from the Partido Popular underlining that the health system will remain free at point of use, and a co-payment idea, and another idea to charge top-earners will not proceed.

It’s not entire clear how or when the Health and Education Ministers will meet with the regions, both services being devolved to the autonomous governments, but presumably a series of meetings are now imminent.

The current healthcare system is reported to be 20 billion € in debt currently. The regions have been surviving on money supplied by central government.

The Deputy General Secretary of the PSOE Socialists, Elena Valenciano, has commented that the health and education systems ‘cannot support a 10 billion € adjustment’. She said she needed to speak to Rajoy, as it ‘could question the health and education that we know’.

Source: Typically Spanish

1 COMMENT

  1. I just do not get what this professor is trnyig to say. He is comparing cost of hiring from Germany to Spain but he does not talk about actual costs in each one of these countries.First of all, he shows as a graph of Labour Productivity that goes up to 2009 that clearly shows how in 2009 productivity in Spain sharply goes up and in Germany it goes down. So the difference he mentions up to 2008 does not make too much sense when we can see how that is quite minimized in 2009. Kind of do not let the truth spoil a good headline.He then shows us a graph about the increases of labour compensation in Spain versus Germany both starting in 2000 and ending in 2009 also in percentages. It is clear in that graph that labour cost have risen higher in Spain than in Germany but he does not show us a graph on how inflation has gone up during those same years to see if up to a level it could be related, neither he shows as how the cost of living has also gone up in both countries during the period.Without being an expert one would guess that if because of inflation and increase of cost of living has gone up companies sell their product at a higher level it would be normal that salaries also go up. We do not confront that graph either with a showing in the growth of GDP during that same period in which most probably in that period also Spain surpassed Germany, unleast until the real state crash of 2008. The same goes for the unit labor cost graph that he shows at the end.Can I tell my CEO that Germany has grown more than Italy for our products and we should put all our efforts in Deustchland as we have grown 200% there (from 2 to 6 units) versus the 10% growth in Italy (1.000 to 1.100)?I am not an economist but for what I understand his conclusions are quite biased and not worth much

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