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HUGE PROTESTS against crisis pay cuts and tax hikes filled the streets of Spanish cities this evening, as workers yelled in anger branding the crisis measures “robbery”.
Unions called more than 80 demonstrations across the country, the latest and biggest in an almost daily series of protests this month.
“Hands up, this is a robbery!” protesters bellowed in Madrid, where a sea of demonstrators crammed the avenues of the city centre.
A sustained string of protests erupted after prime minister Mariano Rajoy last week announced the new measures, aiming to save €65 billion in order to slash the public deficit.
Among the steps is a cut to the Christmas bonus paid to civil servants, equivalent to a seven-per-cent reduction in annual pay. This came on top of a pay cut in 2010, which was followed by a salary freeze.
“There’s nothing we can do but take to the street. We have lost between 10 and 15 per cent of our pay in the past four years,” said Sara Alvera, 51, a worker in the justice sector, demonstrating in Madrid.
“These measures won’t help end the crisis.”
Under pressure from the European Union to stabilise Spain’s public finances, the conservative government also cut unemployment benefits and raised sales tax, with the upper limit rising from 18 to 21 percent.
Budget minister Cristobal Montoro defended the measures today, saying they were needed to lower Spain’s borrowing costs.
“There is no money in the coffers to pay for public services. We are making reforms that will allow us to better finance ourselves,” he said.
Protestors angrily rejected this claim. ”There isn’t a shortage of money — there are too many thieves,” read one sign hoisted in the crowd.
Critics say the government’s new austerity measures will worsen economic conditions for ordinary people.
Cristina Blesa, a 55-year-old teacher, said she and her husband would struggle to pay their son’s university tuition fees because of the cuts and tax hikes.
“We’re earning less and less and at the same time the price of everything is going up — the metro, the lighting bill,” she said.
“Now with the rise in VAT everything is going to be even more expensive. It’s more and more difficult at the end of the month.”
Unions have called for the protests to be peaceful but clashes broke out between demonstrators and police on the fringes of some marches in Madrid last week, including one by striking coal miners.
Spain is due this month to become the fourth eurozone country, after Greece, Ireland and Portugal, to get bailout funds in the current crisis when it receives the first loan from a €100 billion credit line for its banks.
Eurozone leaders are expected to finalise the deal in a telephone conference tomorrow.
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‘Customers urge Ulster Bank to go f themselves and will do what they like with their money’. The audacity of it, I understand like why they wouldn’t obviously want people to, but really they can’t dictate about how or when people solve a problem they created.
Can we just remember a few months back Ulster Bank said “don’t worry, we’ll sort it for you”.
Some of the comments here, and general Irish opinions, reminds me of the frog in a pot as the water boils. Right now, there is absolutely no competition in banking in Ireland, the major banks that remain are very high cost and offer no customer service. They will slowly close more branches, cut costs and increase fees and the Irish will have no option but to pay high costs while also saying “good riddance” to their only competition. Or, even more confusingly, the Irish will say “we will use credit unions” or “the post office”, showing a total and utter lack of understanding of banking and financial acumen. This is fast going the way of a Main Street banking crisis in Ireland and it’s being supported by the people who will be most effected by it, crazy stuff.
@Local Ore: This bank has been a complete disaster for years, as others have said good riddance.
@Ballybough Marcus: What are you talking about? The bank has had no more issues that the big 2, they are pulling out because NatWest thinks there’s no money to be made in the Irish market. Ulster Bank is a subsidy of NatWest who have over €1BN in Assets. As I said, frogs in boiling water, you are bidding good riddance but don’t know the consequence – Irelands banking is now consolidated to 2 banks (PTSB is no where near the other 2) who can apply massive upward pressure, they can increase fees and lower services, exactly like the insurance companies have. Irish people should be outraged and looking for reform in the sector but instead every ordinary joe on the street is celebrating their own misfortune.
@Local Ore: you’re right it is not competitive a d there is very little option. However, much of that is down to the fact that larger multi national banks would rather focus their attention on bigger markets or bigger potential, that isn’t here right now and it’s been well publicised that it’s an issue, can’t force banks to open here and until one sees it as an opportunity more than a risk or their other options then it’s likely to continue. As for saying good riddance to Ulster Bank, they’ve closed a long time before they announced it, was impossible to do any sort of business with them. The others are bad but they’d shit up shop long before they announced it.
@This time its personable!: My town of 10,000 hasn’t had a physical bank branch of any kind in donkeys years. But the Ulster Bank App has been excellent and the times I’ve had to travel to the nearest Ulster Bank branch have always resulted in excellent customer service so I’m sorry to see it go.
@Local Ore: i know what you mean. But there is Revolut for free accessible day-to-day banking. Just can’t do loans or mortgages with them.
More bank arrogance… Good riddance to them.
Would help if you could do it online instead of visiting branches or writing letters.
What happens if you close your account and still owe personal loan and overdraft?
@paul christopher cox: The bad loans will be sold to a recovery agency. What little peace a person has from a bad loan with a bank is nothing when compared to the recovery agencies. If you’re thinking this, I would reconsider.
I wonder if the other banks will start competing for the accounts.
@Sandra Duffy: since there’s only a handful left now Sandra I wouldn’t be at all surprised if their offer was a special one off – you to pay them to join as well as the other normal charges!
@Sandra Duffy: It would be nice but it won’t happen—–They’re a cartel —just like the meat factories and the Legal system!
I could have sworn i heard people having to get accounts quickly ….could just be rumors though
All them running out of the market as there won’t be any bail outs next time things go bust..
now we are stuck with three banks that the government will support. But will leave us, the customer frustrated from lack of customer service and branches and p*ssed off with the charges and interests they will charge.
Hmmmm maybe money in the mattress is the only option here…
have your say