The economy is like a dual edged blade, you press too hard and there’s an increased possibility of sustaining a gushing injury. Take a look at the European economy these days; it’s just spreading like a fire in a haystack, affecting different regions at different levels.
Spain recently got affected by the feverish touch of the ailing economic giant. In an attempt to devise a cure, the powerful regional governments of Spain, agreed on adapting to a tighter deficit mode for the next 3 to 5 years. According to latest data provided by Spanish statisticians, almost 17 autonomous communities provide the essential services that include Health Care, Educational Reforms and basic necessities of life.
Hence, it was agreed among these communities to limit their deficits to 1.3 percent of the total GDP, instead of the 2.4% rate, which was agreed on March. An additional sum of 1 Billion Euros will have to be carried out as per the spending cuts policy, for the next year.
Spain’s Financial Minister – Elena Salgado said that the new deficit profile was mutually agreed on, by all members of the autonomous communities. Apparently, everyone is going to chip in and we’ll all work as a team to get through this tough time.
As of this moment, Spain’s national government has revealed 65 Billion Euros in spending cuts for the year 2011, in order to bring down the public deficit to a 3.0 percent of GDP. Perhaps the good part about Spain is its sense of decentralization. With all communities working almost independently, chances are that the economic depression will be overcome rather quickly than the anticipated time limit.