Spain is getting a bailout

C_Mababejive

One of Spains problems is that the culture of earning money and paying tax is riven with corruption. There are no real issues about doing deals by the back door and falsifying accounts so that everyone can benefit from some "black money" as they call it.

Even the unemployment figures are skewed. There may well be for eg 25% registered youth unemployment but a big chunk of them will be working in various casual jobs and earning black money.

Take for example the time when Spain switched to the Euro. There was widespread panic across the land as money people had black money in cash in Pesetas. What a problem. It could be valueless overnight. It had to be laundered.

The Spanish tax authorities seized their opportunity and started issuing tax demands to many individuals,particularly self employed ,more or less saying,,well you owe us this amount,with a hidden message that,if you pay this you can keep the rest.

There was a massive spending splurge of black money pesetas,turning them into cars,homes,house improvements,whatever. Of course the situation hasnt changed and now the black money is being salted away on Euros.

The British are of course better trained. They are used to the control of a Feudal society in which you slave and automatically pay taxes. The thought of a bit of black money is dodgy and we fret about it.

Why do you think there are so many private hire cabs/dodgy takeaways and such like? Its all black money and money laundering.

michaels

Back on topic, we have had a lot of comment this week from DC, Obama and Osbourne that something is being hatched on the Euro front along with the will there/won't there be a meeting over Spain.

I think there will be a major announcement at the end of the weekend, probably a 100bn EUR Spanish bank bailout (by the ECB?) but who knows what else?

lvader

The Spanish government doesn't want a bailout, what the need and are looking for is for the ECB to help their banks. They don't want to go down the route bailing out their banks and turning private debt into public debt.

Thrugelmir

C_Mababejive wrote: »

Even the unemployment figures are skewed. There may well be for eg 25% registered youth unemployment but a big chunk of them will be working in various casual jobs and earning black money.

Is that fact or your opinion? Certainly not what I found to be the case in Madrid last year. Casual jobs doing what? The economy as a whole is struggling.

C_Mababejive

Thrugelmir wrote: »

Is that fact or your opinion? Certainly not what I found to be the case in Madrid last year. Casual jobs doing what? The economy as a whole is struggling.

It is the result of my observations having had family connections in Spain for two decades.

The_J

C_Mababejive wrote: »

It is the result of my observations having had family connections in Spain for two decades.

I'm afraid you'll have to do better than that. The man has actually been to Spain !!!!!!.:rotfl:

worldtraveller

Spain is poised to receive up to €100bn (£81bn) to rescue its debt-laden banking sector after eurozone finance ministers today held emergency talks on its financial crisis.
Economy Minister Luis de Guindos will hold a news conference at 6.30pm UK time to explain “actions on the recapitalisation of the Spanish banking system,” the ministry said in a statement.

He will speak after ministers from across the shared currency nations on Saturday afternoon embarked on a conference call to outline a rescue deal, as a formal request by the eurozone's fourth biggest economy appeared imminent.

Fellow euro nations are expected to demand that Spain carries out reforms in its financial sector in exchange for coming to the aid of its stricken lenders.

"The amount on the table at the moment is as much as up to €100bn but this hasn't been decided yet," a senior EU official told AFP during the nearly three-hour call. The money will come with conditions attached entailing a "clean-up of the financial sector", the source said.

Telegraph.co.uk

ChiefGrasscutter

lvader wrote: »

The Spanish government doesn't want a bailout, what the need and are looking for is for the ECB to help their banks. They don't want to go down the route bailing out their banks and turning private debt into public debt.

Well if that happens and is approved etc stand by for an "nuclear response" from the Greek electorate on the 17th - they will be incandescent.

worldtraveller

Spain is to get loans to help shore up its struggling banks, its economy minister has confirmed.

He was speaking following an emergency meeting of eurozone finance ministers.

Luis de Guindos said Spain had agreed to officially request assistance from eurozone rescue funds.

He did not say how much the financial system would get, but he said it would be "significantly" more than the 40bn euros ($50bn; £32bn) recommended by the International Monetary Fund.

BBC News

Shocker! :rotfl:

You really do have to wonder what planet the IMF are living on! I also have absolutely no doubt whatsoever that this is just a starter either! A lot more to come later! :whistle:

MacMickster

It appears that Spain have won the game of brinkmanship on this occasion, and it is the banks rather than the Spanish government that are going to be bailed out.

Full details of the package won't be confirmed until after the Greek election, presumably in the hope that the Greek electorate won't realise that whilst they have been shafted by Frau Merkel, leaving them with little hope of their economy ever returning to growth within the Euro, Spain have received rather better treatment.