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The IMF proposal, made public last week, to cut wages in Spain by 10 per cent in exchange for funding for job creation, has found a “remarkable ally” in the shape of Olli Rehn, the Vice-President of the European Commission, and the Commissioner for Economic Affairs.
Whereas the Spanish government, the country’s political parties, and its trade unions are against the proposal, on August 6, Rehn wrote on his blog, that those who are opposed will have to bear the “responsibility of the social and human costs on their shoulders.” The commissioner also pointed out that the wage cuts undertaken in Ireland and Lithuania have met with success.
The daily notes that, having overcome their previous differences, the new allies of the European Commission and the IMF —
… now agree that wage cuts should be explored as a means to reduce the unbearable rate of Spanish unemployment.
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