Social cohesion and state in times of austerity
17
Friedrich Ebert Stiftung Nicosia, 5th of October 2013 José Moisés Martín Carretero
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19-Oct-2014 -
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Transcript of Social cohesion and state in times of austerity
Friedrich Ebert Stiftung
Nicosia, 5th of October 2013 José Moisés Martín Carretero
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GDP Employment
2nd phase: (Gov.
PSOE): BIAS TO AUSTERITY
3rd phase: (Gov. PP):
STRONG AUSTERITY AND HARD CUTTINGS
1st phase (Gov.
PSOE): EXPANSIVE POLICIES
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08Q
1
2008
Q2
2008
Q3
2008
Q4
2009
Q1
2009
Q2
2009
Q3
2009
Q4
2010
Q1
2010
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2010
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2010
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2011
Q1
2011
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2011
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2011
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2012
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2012
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2012
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Domestic Demand External Demand GDP
30
32
34
36
38
40
42
44
46
48
50
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Revenues Expenditure
0
5
10
15
20
25
30
15.000
16.000
17.000
18.000
19.000
20.000
21.000
Employment (thousands) (left axis)
Unemployment rate (right axis)
2008 2009 2010 2011 2012
Wage increase in collective agreements 3,6 2,2 2,2 2,4 1,4
Wage costs 5,1 3,2 0,9 0,3 -0,5
Labour costs 4,8 3,5 0,4 1,2 -0,6
Inflation (ICP) 4,1 -0,3 1,8 3,2 2,4
Real wage increase in collective agreements -0,5 2,5 0,4 -0,8 -0,9
Real wage costs 0,9 3,5 -0,8 -2,8 -2,9
Real labour costs 0,7 3,8 -1,4 -2,0 -2,9
-35,0 -30,0 -25,0 -20,0 -15,0 -10,0
-5,0 0,0 5,0
10,0 Gr
eece
Spai
n
Portu
gal
Irela
nd
Slove
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Italy
Cypr
us
Neth
erla
nds
Euro
area
Esto
nia
Fran
ce
Slova
kia
Belg
ium
Finla
nd
Aust
ria
Mal
ta
Luxe
mbo
urg
Germ
any
Compensation of Employees. Cumulative change 2010-2012
Spain has sistematically underestimated the budget for unemployment
Average benefit per day has decreased
Internal devaluation has led to a wage reduction and worsening income distribution. Internal demand is depressed.
In spite of efforts, Public deficit still being far away from Stability Pact target.
Social budget cuts rather than social model modernization. Worst still to come.
Decrease of household disponsable income, and higher inequality of income, led to an increase of poverty and social exclusion.
