Sunday, 5 June 2011

No Money to Pay 70,000 Employees In Castilla-La Mancha Region of Spain: Situation a "Total Failure"

 

My friend Bran who lives in Spain passed along this bit of news regarding Spain.

After the power change in the Castilla-la Mancha community, the new People's Party governorship effectively declares it bankrupt, with 2 billion EU unpaid service bills and 7 billion EU in debt.
70,000 state workers are only guaranteed one month's wage now.
No Money for Payrolls
Courtesy of Google Translate, please consider The PP says there is no money to pay payrolls in Castilla-La Mancha
The PP will have to find ways to pay from next month's payroll of 70,000 employees of the Junta de Comunidades de Castilla-La Mancha, because the situation is "total failure", with a debt to suppliers of 2,000 million euros , has secured the regional secretary of the PP, Vicente Tirado.
The PP leader said that this month other officials charged by the payroll but no money for months, but has sent a message of peace because the PP, he added, will find the mechanisms to pay thereafter, and cited, for example, privatization of public television.
PP general secretary of Castilla-La Mancha has criticized Barreda have "paralyzed the administration" and that since his "irresponsibility want to mount a minefield" that cannot pay anything.
He will be remembered, he added, as the "worst" president of an autonomous region that has more than 7,000 million euros of debt owed ​​on unpaid invoices more than 2,000 million, which is leading to the ruin of small entrepreneurs as well to lead the ranking of communities deficit.
Those who can read Spanish may wish to consider El PP asegura que no hay dinero para pagar nóminas en Castilla-La Mancha
The following map and facts courtesy of Wikipedia will help put the region and population in proper perspective.
Castilla la Mancha

Area-wise that is about 15.7% of Spain, population-wise, only 4.3% of Spain.
From Wikipedia
It is mostly in this region where the story of the famous Spanish novel Don Quixote by Miguel de Cervantes is situated - due to which La Mancha is internationally well-known. Although La Mancha is a windswept, battered plateau, it remains a symbol of the Spanish culture with its vineyards, sunflowers, mushrooms, oliveyards, windmills, Manchego cheese, and Don Quixote.
Castilla-la Mancha is one of the more sparsely populated regions. However, where there is smoke, there is going to be fire, and much of Spain is smoking in protests, high unemployment, property bubbles, union inefficiencies, and other related problems.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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