The IMF has yet another “tax reform” proposal for Spain. You just wonder what planet they are living on…
The IMF also suggests that companies should be able to lower the salaries of their workers, sorry, I mean “adapt remuneration”:
Further enhancing the ability of individual firms to adapt remuneration to their specific conditions would better align productivity to wages and help struggling firms stay in business.
Companies should also be allowed to write off unpaid taxes and social security in a speedier and more efficient bankruptcy process, unlike bankruptcy for the people, which doesn’t really exist at all in Spain.
Oh wait, they do suggest that the peons should be allowed to a “fresh-start”, provided they deliver all their assets to their overlords, and spend a “considerable” amount of time as debt slaves.
“Experience in other European countries has shown that such a framework can be designed to be in the interests of the financial sector and preserve Spain’s strong payment culture”
Err, what about the interests of the people? Spain’s strong payment culture!?!?! WTF? I suppose they mean the ability for banks to impose life-long poverty on anyone stupid enough to sign a contract with them.
I’ve always found it funny (sad) that in Spain if you steal money from a bank and get caught, you might have to give some of it back or go to jail for a couple years and that it. However, if you legally borrow money from the bank and then lose your job and can’t pay it back, you’re screwed for life.
They are also worried that perhaps people and companies are in too much debt, so banks should be encouraged sell off their any remaining non-garbage assets to vulture capital funds at below market prices (err sorry, that should read “increase their capital levels”), as well as laying off as many people as possible (sorry, I mean “reduce costs”).