Spanish Unions Prepare for Strike-First Time in Last 8 Years

Discussion in 'Wall St. News' started by ASusilovic, Sep 27, 2010.

  1. Spanish unions have called a national strike Wednesday, the first in eight years, to challenge Prime Minister José Luis Rodríguez Zapatero's austerity push and labor-market overhaul, but they seem to have scant prospect of rolling back changes widely seen as necessary to combat a deep fiscal and economic crisis.

    Nevertheless, against the backdrop of a flare up in the sovereign-debt crisis, nervous investors will be watching for any signs of a popular backlash that could derail the austerity push in Spain, the euro zone's fourth-largest economy. Furthermore, the challenge comes from a key constituency for Mr. Zapatero's Socialist party, which could make the government more sensitive to its demands.

    "Obviously, investors will keep on eye on the strike," said Tullia Bucco, economist at UniCredit in Milan. "It will be a gauge of how effectively the government can enforce reforms."

    Unions, however, have had difficulties shoring up support for their blocking efforts as the result of widespread pessimism regarding Spain's economic outlook and, in many peoples' eyes, their own damaged credibility. Until the recent overhaul push, they had maintained warm relations with the government and maintained a low profile, despite spiraling unemployment. A June 8 public-sector strike was supported by just 12% of workers, according to government data.
  2. Where are you from ASuslovic, if I may ask? Just curious because you seem to be the only one posting articles/links about Spain.
  3. Well, the "world view" is sometimes very US centric. I have a different approach and like to look beyond the pond...