August 26th 2013
Labor cost is not the key

In line with the disastrous troika recipes that have been applied in other countries with over-indebtedness, the IMF, with the rapid accession of Mr. Olli Rehn, proposed to cut Spanish state wages by 10%, saying that it would help to create jobs and strengthen the exports.

A statement of this type has a double component. On one hand the belief that Spanish exports can only compete in global markets by cost, giving up competition for products that internalize scientific and technical progress thanks to the integration process provided the design, and on the other hand, it presupposes that the problem of all evil lies in the cost of wages. Not to mention that 10% lower wages would further shrink the market and would lead to a recession unbearable, it must be stated forcefully that the two aspects implied in the IMF proposal does not conform to reality and are untrue.


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Antoni Garrell