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The
crisis in Spanish regional governments continues to escalate. El Pais reports Catalona
Will Not Pay Hospitals or Private Centers and 100,000 workers are affected.
This month, the Government of Catalona cannot tackle payments owed to hospitals,
schools, residences, social organizations, and children in care centers and
workshops. These are the services provided by entities,
public and private, funded by the Government but managed not depend on it.
The move affects up to 7,500 associations and some 100,000 workers, according
to the third sector.
The news that the Government could not meet its commitments this month was
confirmed on Monday after several days of negotiations with the affected
entities. Sources from the Departments of Health and Welfare explained ten
days ago it "could not meet the payments this month." Welfare,
however, has ensured that other non-contributory pensions paid or the minimum
income.
The federations that warn-grouped after an emergency meeting with Social
Welfare that many of them are on the verge of "collapse" in a
situation "unprecedented". And is that the default is added to
other cuts that have affected the sector this year, as 56% of the budget on
labor market policies.
The Catalan Association of Relief calculated that 63% of companies cannot
meet the payroll this month. To alleviate this choke, Acra
has asked for help from families, proposing that advance a couple of months
of contributions.
This is not the first time that the Government is obliged to defer payment of
the concerts. It happened last September when he could only address 65% of
the amount and the rest was paid by the end of the year.
The idea
that Spain can avoid a complete sovereign bailout seems pretty absurd at this
point. The solution, of course, is a combination of default, a eurozone exit, work rule reform, and pension reform, but
so far there is no rational discussion of those ideas at the highest levels.
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