Zapatero: Cautiously Optimistic for 2011
December 31st, 2010
Prime Minister Jose Luis Rodriguez Zapatero has looked ahead to 2011 and expressed cautious optimism toward his country’s performance during the year.
Despite a number of stock market scares and a high unemployment rate, 2010 has seen Spain ride out the worst of the economic crisis, Zapatero said after the final cabinet meeting of the year.
He predicted that Spain would go from recession to recovery in 2011 after “a difficult year”.
He said he expected a “slow economic recovery,” but announced rises in pensions and in the minimum salary for the coming year.
A 1.3% increase in the minimum wage will take the lowest monthly pay packets to 641.50 euros.
Mr Zapatero said state pensions would go up by at least the same percentage – and more in the case of those receiving the smallest pensions.
“There is a period of consolidation and strengthening that lies ahead of us,” he said.
Zapatero talked about the need to raise the retirement age to 67. Spain’s unions have already announced they will vigorously oppose such a measure.
“It is necessary to allow public spending on pensions to fall in line with the European average. We have to join the countries that have raised the retirement age to 67. We have to be flexible, but it needs to rise to 67 years,” Zapatero said.
“We have to think ahead 20 years with regards to pensions and public accounts. If we want solid economic growth, we have to look in the long term and make the necessary reforms,” he said.
Zapatero defended his government’s social policies, saying his Socialist (PSOE) party had “done more for social policies” than any other party.
Finally, Zapatero reiterated the forecast that the government’s budget deficit would be 9.2% this year, 6.3% in 2011 and 4.4% in 2012.
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