Mariano Rajoy walking a fine line [SoberLook]
August 17, 2012 Leave a comment
In order to avoid the wrath of his nation’s labor unions, Spain’s prime minister agreed to extend the unemployment benefits for another six months.
Bloomberg: – Rajoy said yesterday his government will continue to make payments to the long-term unemployed, extending for six months a benefit adopted by his Socialist predecessor three years ago that was due to expire today.
This may further strain the nation’s budget deficit and potentially irritate Germany, who reluctantly agreed to allow the ECB to provide direct support to the Spanish government. And Spain is fully expected to ask for that support.