BLOOMBERG: “Spain’s opposition People’s Party pledged to restore investor trust in the euro area’s fourth- biggest economy by imposing more spending cuts if it wins early elections in November.
With Europe’s debt crisis lapping at Spanish shores, the People’s Party led by Mariano Rajoy, 56, is set to campaign on the extra steps it says are needed to kick-start growth and slash unemployment of more than 20 percent. The PP is holding out the prospect of more austerity after the Nov. 20 election as it bids to repeat the trouncing it gave Prime Minister Jose Luis Rodriguez Zapatero’s Socialist Party at local polls in May.”
“Spain’s Socialists have lost support after seven years in power as Zapatero’s minority government pursues the most drastic budget cuts in three decades. Faced with soaring costs to service debt as investors pushed up bond yields, Zapatero bowed to public pressure last week and brought forward the election from March. He has already said he won’t seek a third term.”
“As the country’s borrowing costs have surged, Zapatero, 50, ditched pledges for more social spending and replaced them with public-sector wage cuts and a pensions freeze. Investors questioned his ability to rein in the budget deficit, the euro area’s third-largest after Ireland and Greece, and steer the country out of a three-year slump that has sent youth unemployment soaring to 44 percent. ”
[Read “Spain Election May Mean More Austerity” at bloomberg.com]
The rest of planet Earth is rejecting Big Government and its Keynsian big spenders– is it actually possible that in 2012 the U.S. would be the ONE country that bucks the trend by keeping Obama in power??