Next Gen News

austerity may seem to adapt to the Spanish environment prepared for Easter, but anger is increasingly in the future looking bleak

As hooded penitents Easter unfortunately processed through Spanish cities on Friday, the Spanish wonder how past economic sins turn against him.

With bond yields reached record for the year and the most austere budget in decades bringing more pain to a country already ravaged by unemployment of 24%, prayers for liberation is little likely to meet the short term. Analysts estimate that more and more like other men "sick" of Europe, Ireland, Greece and Portugal -. Spain will eventually have to bail

For some it has become too expensive. Last week, Diego Salazar has dozens of boxes of books in his apartment in Madrid for the reality to its name ("Reality") bar and began to sell ? 3 an item. "It does not work anymore," said Salazar, a Peruvian who worked as a journalist, writer and editor in Madrid for over a decade. "I'm going back to Lima and I can not carry books with me."

analysts suspect Spain will need the help of the so-called troika - the European Commission, the European Central Bank and the International Monetary Fund - which recently rose to the rescue of Greece the second time. "Spain is likely that, in our opinion, to be pushed to a program of the troika of any kind during 2012," Citigroup analysts said.

Government of Spain, meanwhile, tried to outdo the tip hat

Nazarene

penitents, put in a public display of the self-punishment, intended to convince skeptics about the seriousness of the deficit reduction measures. "First the deficit, the deficit in the second, third deficit," intoned the budget minister, Cristobal Montoro, and gave details of ? 27 billion (£ 22 billion) of cuts, tax increases and extraordinary measures, this year.

In an attempt not to cause too much damage to the economy, Montoro includes a tax amnesty in the budget, which allows those who cheated to pay income tax of 10% of your hidden money. what was conceived as a way to delay recovery in the residential construction boom spectacular - a bubble, that four years after hatching, left to builders and developers who are huge loans they can not afford

The same does not happen with the economy, where 500 euro changed hands rapidly during the boom. Montoro expected 2.5 billion euros of this money on the black market will find its way to the Treasury. If the measure fails, further cuts will be inevitable.

Prime Minister Mariano Rajoy conceded things had gotten out of hand during the boom, where the regional governments and municipalities compete with each other to spend the wealth generated by the housing bubble. "We can not have twice as German airports - does that," he said. "We can not have gyms everywhere, or conference rooms and exhibition centers, at least not these days." He was referring, among other things, the brand new airport at Castellon Ciudad Real -. Two empty white elephants are symbols of the type of spending encouraged by local politicians and savings banks, now bust during the boom years

and housing prices dropped 25% from their peak, are set to fall by the same amount again in the next two to three years. Estimated that up to one in four mortgage holders remain in negative equity later this year. The reforms introduced by De Guindos forcing banks to realize losses and sell the new homes that have accumulated by the developers of bankruptcy.