Austerity Dictat

Economical policy where paying the debt to the banks is favoured above any other kind of spending.

This policy was secured thanks to the constitutional reform agreed upon by the conservative party PP and the socialist PSOE under orders by Merkel and behind the citizens’ back in August 2011.

The Troika has imposed this policy on the southern European states that are in debt, namely Portugal, Spain, Italy, Greece, with disastrous consequences for the welfare of the people.

They say debt is the heaviest burden that a country can have and that the utmost priority should be to pay it. And, for this reason, brutal spending cuts are being enforced in education, health care, our most basic rights.

But, as the data shows, austerity policies do not work, not even to meet their own goals. Not only do we have more poverty, less welfare, less rights, more unemployment, etc., but our debt continues to grow at an alarming rate while our GDP falls. To sum up, they cut on our rights using excuses of objectives that are not even being met. This is not economy, it is ideology.


Spending cuts > GDP falls > Debt grows in relation to GDP > More spending cuts

They are imposing this punishment on the people who have not caused this crisis, because we have not lived beyond our means.

The financial crisis turns into a big fraud at the moment when they make us pay with our money the losses of some speculators that have gambled with construction and the real estate bubble.

We must be brave and make those responsible pay for this crisis

The people do not have to pay for a debt that is not ours. We do not have to pay for the bank bail-out. We do not have to pay for the usury interests from the speculation of the markets.

Central European Bank lends to banks at 1% Banks sell to stats at 7% (or the rate that vile rating companies set) States spend money to bail out the banks

In our current situation, debt cannot be paid. Spending cuts, as we have seen, will make the debt grow even more. The IMF -which has been wrong on every prediction it has made during the crisis- estimates that the debt will balance out if we start to grow at 5%. That is to say, growing faster than China.

  • An urgent extension on the payment of the debt is needed.
  • It is necessary to renegotiate the interest rates and the due dates, in order to make them more flexible.
  • An audit on debt at a European level is needed, such as the one that Compromís has started in Valencia, to determine which part of it is legitimate and which is not.
  • It is necessary to share the debt so that the southern states are not exposed to the attacks from the markets. To end with the interest rate differentials (risk premium), that allow Germany, for example, to finance itself almost at a zero cost while we are being imposed usury interest rates. If the euro is to survive as common currency, this is an indispensable measure.
  • We have to free ourselves from the debt tyranny to put the economy at the people’s service: investing on welfare, on restructuring the real state industry, on green economy, R&D, etc.