Economy and Business Info

Posts Tagged ‘Social Security’

The new rules impose more frequent visits from officials of Euro stat to countries subject to prosecution for excessive deficit.

Thus, when there is reasonable doubt about the accuracy of the deficit and debt figures sent by a government in Brussels, the EU executive will send officials to the country concerned and to review firsthand the central government data, regions municipalities and social security.

In addition, Member States should provide Euro stat with the information required to examine the quality of fiscal statistics. Economic Affairs Commissioner, Olli Rein, said the new audit powers “are an essential requirement to have an economic and monetary union (EMU) strong and functioning effectively.” “We need accurate and reliable statistics on national accounts for EMU to work,” he said.

Rein announced that the first country to send a mission Euro stat when Parliament ratifies the strengthening of its powers would be Bulgaria. “We have some concerns about the functioning of statistics in Bulgaria,” he explained.

The EU executive called for and these additional powers in 2004, precisely when it was discovered that Greece had falsified data to enter the euro. However, the capital has refused to grant.

However, after coming to power, the New Greek socialist government again reviewed in October the deficit forecast for 2009 from 3.7% of GDP was estimated last spring to 12.5%. Subsequently, Euro stat has again revised upwards the Greek deficit last year to stand at 13.6%.

Distrust in the quality of the Greek statistics has been one factor that has aggravated the country’s debt crisis and forced him to benefit from the fund of 110,000 million set by the euro zone countries and the International Monetary Fund avoid bankruptcy. To avoid these problems again in the future, Member States have raised their reserves and have agreed to give more powers to the Audit Commission.

The president of the PP in the Canaries, José Manuel Scoria, has assured that the Prime Minister, José Luis Rodriguez Zapata, at the time could take his “populist measures” due to the economic legacy of eight years of PP government.

“While Zapata managed the great economic legacy he had received eight-year rule of the PP, could take any populist measures always saying that never diminish the salary of staff, never freeze pensions and would never do a reversal of policy social “, as expressed today in a statement to the media on the occasion of the Congress of Councils of Trustees of the PP in the Canaries.

“Look at the legacy he received the Prime Minister in 2004. An economy, which was the increased use, generated throughout Europe. An economy that we had delivered in 1996 with a deficit of 6.7 percent, which at that time was a massive shortfall exaggerated and even questioned the Spanish economy’s capacity to assume the balance of input in regional and monetary union. Instead, we submitted a budget and balanced public finances, “he said.

This way, explained that the inheritance received Zapata had a Social Security Fund endowed with 10,000 million euros in 2004, “when eight years earlier than had been received was a Social Security a whole 3,000 million euros”.

Therefore, he added that “it is a textbook example of that, from a position of enviable economic heritage frankly received throughout Europe, has changed in six years, because for the first time an institution had to leave the rescue a major economy. ” “True,” he concluded that there had been a ransom to the Greek economy, but with all due respect, the size of the Greek economy is far from the Spanish economy”