The Spanish public won’t accept a financial coup d’etat
Spain’s government is right to fear the public reaction to this new round of suffering mandated by the financial markets
Tuesday 25 September 2012
The attempt by the Spanish “Occupy” movement, the indignados, to surround the Congress in Madrid has been compared by the secretary general of the ruling rightwing People’s party (PP) to an attempted coup.
Spanish democracy may indeed be in peril, but the danger is not in the streets. According to the Financial Times, the EU has been in secret talks with the economy minister Luis de Guindos to implement further austerity measures in advance of Spain requesting a full bailout. On Thursday the government will announce structural reforms and additional spending reductions, on top of the already huge cutbacks in health and education.
Pre-empting the bailout conditions means the government is able to retain the illusion of sovereignty.
In reality, Spain is on the brink of insolvency and under huge pressure to accept a rescue package. In return, the eurozone’s fourth largest economy will have to surrender sovereign and financial control to the IMF, the European commission, and the European Central Bank.
If talk of a financial coup d’etat sounds far-fetched, consider this statement from a recent Goldman Sachs report: “The more the Spanish administration indulges domestic political interests … the more explicit conditionality is likely to be demanded.” That’s banker-speak for, “We can do this the easy way, or the hard way.”