the OECD Slap to Spain

We are going to talk about economic issues (they are a roll I know). We will explain from our humble point of view what the thinking minds of the financial world recommend in the OECD Slap to Spain .

OECD slap Spain

Days ago, a piece of news that we are so used to has appeared, an international organization (of the many there are) gave us the following recommendation, in Spain we have to carry out more reforms. In this case the body in question is the OECD the Organization for Economic Cooperation and Development almost na.

The same thing that the latest study carried out by this body tells us, the European Commission, the IMF, the European Central Bank and the Bank of Spain have told us, nothing new under the sun.

From the point of view of citizens of the world and specifically of this Spanish State, I ask myself: What do these OECD paint now demanding or advising reforms to our country?

To understand a little why this OECD organization gives us its humble advice, we would have to go back a bit to 1948. Do you want to learn a little history? “ Yes continues reading “ no jumps to the next point.


1#. How the OECD was born

The OECD was born in 1948. It was an Organization for European Economic Cooperation with the objective of administering the Marshall Plan for European reconstruction .

In 1960, the Marshall Plan ended and the member countries agreed to invite the United States and Canada to create an organization to coordinate policies among Western countries. The new organization was called the Organization for Economic Cooperation and Development and its headquarters are in Paris, France.

The OECD is a leader in publications on economics and social affairs with more than 500 titles per year, more working documents and other products, that is, these guys must know a lot to publish so much.

The subjects on which the OECD publications focus are the following:

Public administration

Agriculture, food and fishing

Development assistance

Financial and fiscal matters

Science and technology


Territorial, regional, urban and rural development



Employment and workforce


Nuclear energy



Eastern and Central European countries

Competition and consumer policies





So that we know, Spain entered the OECD in 1961 .

2#. Current economic status

Like any report worth its salt, you can always see the glass half full or half empty. The “positive” part indicates that “ the Spanish economy has returned to a growth path (it is noted that these gentlemen do not live in Spain). Accompanying this statement that Spain after a deep recession (that is more than clear) sovereign debt has been drastically reduced (this is what most interests you to pay what you sinners).

In short, things have gone very well because we pay like watches. This seems to be the most important thing, the reduction of our debt is the fundamental basis of the solution to our problems.

The OECD admits that the measures taken by the Government to reduce public spending and increase income have allowed the sustainability of public accounts. Take note, if the sustainability of these accounts has now been allowed, it means that before these measures the public accounts were unsustainable. Now you only need to know exactly what public accounts have been reduced.

The OECD also commends the reforms adopted " especially to reform the banking sector " and the reforms of the labor market and that of goods and services.

What does this mean?. The OECD that international Organization for Economic Cooperation and Development celebrates the rescue by the State of the banking sector, because reforming what is said to be reforming is still the same dog with a different collar.

The reforms of the labor market are summarized in leaving this market in precarious, low wages and self-employment as a solution for labor survival, we are going to be a success for the people.

Finally, the reforms in goods and services are based on limiting hospital access, removing aid for dependency, aid for the unemployed and cuts in education.

3#. What new recommendations does the OECD tell us?

In a new attempt to show us our way in the desert, the OECD releases the following battery of “ new reforms with the approval and approval of our politicians, that is, no one who represents us has criticized anything in the OECD report this goes to mass (because they know most of it is true).

Reduction of private indebtedness and credit boost : Since the beginning of the crisis, families and companies have had the rope around their necks. However, "access to credit remains difficult" and existing insolvency regimes "are limited in scope and only allow debt settlements ."

We already knew this, getting a loan is a difficult task. (They could have asked me) for that we have created SEattle Meditation and its loans between individuals for companies and the self-employed , if unemployment does not decrease and family income does not rise, consumption and the possibility of paying outstanding debts is presented complicated. Moreover, the continuous rise in taxes, VAT at 21%, the price of gasoline, food and the cost of living day by day place most Spanish families on a thin red line between life and life. bankruptcy.

It must be for this reason that the OECD recommends as a structural reform “to continue with the improvement of judicial insolvency procedures , increase the incentives for SMEs to resort to these procedures, both judicial and extrajudicial, and introduce a new personal insolvency regime ".

This is a sign, as apparently many families and companies are going to be bankrupt, put the favorable means for this bankruptcy to be a clean slate (it sounds a bit American). With this scenario, the banks are going to lend you what I tell you.

Spain must reduce public spending to "return to budget balance in 2017":

What does this mean, gentlemen of the OECD? Reduce public spending? But if in "theory" that has already been done. Public works have apparently been reduced to levels of I do not know what year, the municipalities spend less and less because they do not have money or because they do not get funding, we are doing something wrong in this case, explain it to me please, where are we going to Reduce public spending? If we even fell trees to cut back on gardening.

That of "returning to budgetary balance in 2017" if we think about it sounds dodgy, we are in 2014 having a hard time until 2017 arrives, how are we going to spend it?

Tax reform: The OECD report indicates “to redistribute the burden from work towards indirect taxation, reducing social contributions to Social Security for lower-skilled workers , increasing environmental and real estate taxes and reducing exemptions in VAT, companies and personal income tax ”. With regard to companies, his proposal is "to expand the tax base of the IS, reduce the rate and eliminate special regimes for SMEs."

This is very good and should not be a reform but a reality. A low-qualified professional should not contribute to social security in the same way as a qualified professional, in Spain we have a historical burden with Social Security .

They also require removing the deduction for housing in personal income tax for all taxpayers and points out that equality and investor neutrality could be encouraged by subjecting all incomes, both capital (dividends, capital gains and interest), and work, to the same marginal rate of income tax. This treats the home as a luxury item and therefore it is taxed the same by what is earned at work and by what is invested, a blow to speculation.

In addition, it is recommended to rethink the treatment of collective investment instruments, especially with regard to variable capital investment companies (SICAV) and to reinforce controls to ensure that it is not used to avoid paying taxes , another Logically, it is not necessary for an official body to say that in Spain the rich pay the least.

Finally environmental issues, "homogenize the prices of greenhouse emissions", if you dirty the world pays to clean it up .

Labor reform : the donkey returns to the meadow. The report admits improvements in the labor market since the 2012 reform, but calls for more, especially in the so-called “ active employment policies ”. His advice is to " improve professional training", in Spain being a hairdresser is not cool, a hair engineer.

Improve the efficiency of public employment services and enhance coordination between the different levels of the administration ”. The INEM is a full house in Istanbul and the public administration follows by the hand, no efficiency is ever required of them, they do nothing, nothing is required of them.

Competitiveness and universities : one of the keys of the document is competitiveness . Spanish society needs to improve in this regard. It is requested to “ raise the quality of innovation and strengthen competitiveness by promoting universities and research centers of greater dimensions and specialization, expanding the allocation of resources based on the achievement of results and the application of international review mechanisms and providing more professional opportunities to the most highly qualified researchers ". Come on, this is a picture as far as education is concerned, the best-prepared generation in history are zombies , that is to say, quality zero quantity a lot, Spanish universities are full .

All these recommendations (the OECD experts will forgive me), gentlemen, we already knew! There is nothing new, it is only necessary for those in charge to do things in a logical way (it is impossible to believe). which is called social economic utopia.


4#. Last recommendation the most important

They do not make this recommendation because they are ashamed, but I do it personally without charging them anything.

Collect pending taxes: The Treasury, the Government and the judges, have a hard job but not least, please do it before the next elections.

It is assumed that Bárcenas has defrauded the Treasury 11.5 million Euros

Treasury figures the alleged fraud in the Balearic Islands in the case of Urdangarin at 16 million euros

The alleged fraud of the ERES of Andalusia is estimated at more than 140 million Euros

Jordi Puyol has declared that he has had money in Switzerland since 1980. The current fortune of the Puyol family is estimated at 1800 million Euros . The Andorran Government has brought to light the accounts of the family with 500 million Euros .

The total sum allegedly defrauded , I do not fit in the calculator of the mobile, imagine what is pending of mayors, deputies, councilors who are not on this list (they make me sweat thinking about it).

Well, nothing here is the end of the story. If all this stuff has helped you to understand something, give me a google + a like facebook something please, I appreciate it.

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