Spain to create constitutional borrowing limit

Gerald · 08-23-11, 09:19 AM

Spain's government and opposition have agreed to pass a constitutional limit on public sector borrowing.

Last week, the French and German leaders called for all eurozone governments to introduce such a limit to help contain the euro debt crisis.

The move came as the Spanish parliament discussed further austerity designed to cut the deficit to 6% of economic output this year, from 9.2% in 2010.

The prime minister also attacked market fears over Spanish borrowing.

http://www.bbc.co.uk/news/business-14629485

Note: 23 August 2011 Last updated at 13:39 GMT

Skybird · 08-27-11, 03:30 AM

German press has picked up this "debt limit" and criticises it. Commentators point out that it is no constitutional borrowing limit, but just a sub-constitutional law that explicitly leaves open the option to adjust the aimed-at yearly budget deficit limit at will. The constitution however will see an addendum that again refers to this adjustability of the deficit limit, make it a implicit constitutional demand that there shall be no absolute ceiling at all, but only one that can be adjusted whenever parliament wants it. In other words, you can now proclaim a limit on the increase of debts per yearly budget of let'S say 2% - and when you see it does not work, you simply can raise the limit, and make more debts, while still telling the public and Europe that nevertheless you run under the regime of a "borrowing brake".

Hot Air to deceive those voices in Europe demanding the problematic states in the Euro-Zone to make deficit limits mandatory in order to restore finances and healthy of budgets. This law does nothing to guarantee that Spain will not aim at higher deficits in violation of European solidarity, whenever it sees fit.

The EU and the Eurozone is constantly plagued by this willingness to tailor the wording of laws that way that you can interprete them this or that way, and beyond that nevertheless can weazel around the intention that motivated these laws. As we have seen repeatedly, there is also a scupellousness on EU level to even break one'S onwn laws and rules, if opportune. When both the strict nature of a law and the intention and purpose of it this way get betrayed, by eroding the form, weazeling past its intention, and even openly violating it, and all this done intentionally - what does this tell about the attitude and climate of contemporary politics?

Nothing positive, at least this much can and must be said.

08-23-11, 09:19 AM	#1
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	Spain to create constitutional borrowing limit Spain's government and opposition have agreed to pass a constitutional limit on public sector borrowing. Last week, the French and German leaders called for all eurozone governments to introduce such a limit to help contain the euro debt crisis. The move came as the Spanish parliament discussed further austerity designed to cut the deficit to 6% of economic output this year, from 9.2% in 2010. The prime minister also attacked market fears over Spanish borrowing. http://www.bbc.co.uk/news/business-14629485 Note: 23 August 2011 Last updated at 13:39 GMT __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie

08-27-11, 03:30 AM	#2
Skybird Soaring Join Date: Sep 2001 Location: the mental asylum named Germany Posts: 42,609 Downloads: 10 Uploads: 0	German press has picked up this "debt limit" and criticises it. Commentators point out that it is no constitutional borrowing limit, but just a sub-constitutional law that explicitly leaves open the option to adjust the aimed-at yearly budget deficit limit at will. The constitution however will see an addendum that again refers to this adjustability of the deficit limit, make it a implicit constitutional demand that there shall be no absolute ceiling at all, but only one that can be adjusted whenever parliament wants it. In other words, you can now proclaim a limit on the increase of debts per yearly budget of let'S say 2% - and when you see it does not work, you simply can raise the limit, and make more debts, while still telling the public and Europe that nevertheless you run under the regime of a "borrowing brake". Hot Air to deceive those voices in Europe demanding the problematic states in the Euro-Zone to make deficit limits mandatory in order to restore finances and healthy of budgets. This law does nothing to guarantee that Spain will not aim at higher deficits in violation of European solidarity, whenever it sees fit. The EU and the Eurozone is constantly plagued by this willingness to tailor the wording of laws that way that you can interprete them this or that way, and beyond that nevertheless can weazel around the intention that motivated these laws. As we have seen repeatedly, there is also a scupellousness on EU level to even break one'S onwn laws and rules, if opportune. When both the strict nature of a law and the intention and purpose of it this way get betrayed, by eroding the form, weazeling past its intention, and even openly violating it, and all this done intentionally - what does this tell about the attitude and climate of contemporary politics? Nothing positive, at least this much can and must be said. __________________ If you feel nuts, consult an expert. Last edited by Skybird; 08-27-11 at 03:52 AM.