In Spain, ineffectual government is a serious issue. And it is no surprise that the national government is getting closer to one of its favorite daydreams: gaining support from regional governments in exchange for some questionable political decisions.
For example, to gain support for the 2012 fiscal year budget, the PNV (Basque Regional Party) asked that sovereign power precede Basque cajas.
And the Secretary of Labor opened the door for the Federal Fund for Social Security to invest in regional debt. The worst aspect of this decision is that it will increase financial irresponsibility among Spanish regional governments (also known as autonomous communities), which happens to be one of the federal government?s main battles.
The regions can always find an excuse to further delay saving. Further, the government once again showed inconsistency. One day they are proclaiming a spending rule for the regional governments and another day they are providing support for their debt.
Translated and Edited in English by Brandon Dyches and Jose L. De Haro
