Spanish trade unions reject budget adjustment demanded by EU

Spain’s two biggest labor unions have voiced strong opposition to the European Union’s budget adjustment demands, causing potential problems for Prime Minister Mariano Rajoy as he tries to settle in for a second term in office.

“We firmly reject the adjustment of 5.5 billion euros demanded by the European Commission,” the head of the General Union of Workers (UGT), Pepe Alvarez, said at a joint news conference on Thursday with Ignacio Fernandez Toxo, who heads the nation’s biggest union Workers’ Commissions.

The EU requires all member states to bring their public deficit below 3 percent of economic output.

Spain had agreed to reduce its public deficit from 5.1 percent of gross domestic product (GDP) in 2015 to 4.6 percent in 2016 and 3.1 percent in 2017.

However, the draft 2017 budget sent by Rajoy’s government to Brussels last month forecasts a public deficit of 3.6 percent this year.

The European Commission responded to the draft by demanding that Madrid cut government expenses to lower the deficit down to 3.1 percent as agreed upon previously.

To meet Brussels’ demand, Madrid will need to cut spending and increase taxes to make up for the 5.5-billion-euro ($6.1 billion) deficit.

Spain had already been granted two years to bring the deficit below the 3-percent limit.

“It is essential that Spain get at least an additional year of flexibility to adjust its public accounts,” Toxo said.

During the joint presser, two Spanish union leaders further urged Madrid to increase the monthly minimum wage of workers from the current 764 euros to 933 euros.

Conservative Rajoy won a parliamentary confidence vote on October 29, taking power after a 10-month political stalemate.

His minority government will need to scrabble for support from other opposition parties from the left to win approval in parliament for legislation.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk