UNEMPLOYED, FUCK THEM ALL! (II)

The formula for calculating unemployment benefits takes into account the contributions made to a specific contingency system in the last 6 months worked. In this way a regulatory basis is available. The amount actually received by unemployed people is a 60% of the regulatory basis in the six first months and 50% in the following ones (70% and 60% respectively before the last austerity measures adopted two weeks ago).

The minimum and maximum amount of unemployment benefits are as follows:

Minimum gross monthly  amount of benefits	Maximum gross monthly amount of benefits
Unemployed                                 497’00 €	Unemployed                             1.087’20 €
Unemployed with children           664’74 €	Unemployed + child                 1.242,52 €
	Unemployed + children            1.397,83 €

The average amount (before taxes) of unemployment benefits per capita in May 2012 was 865’2 €

The benefits also include contributions to National Health Service to guarantee the access of unemployed people to medical care and contributions to the public pensions system.

What do these figures mean? Let see some references. The rent of a 50 m2 (2 rooms) flat in a working-class neighbourhood in Madrid (no lift, no central heating, no building expenses…) fluctuates between 650 € and 850 €. The 10-trip metro-bus ticket fare is 12 €. The monthly fee of a primary school canteen is around 110 €.

Next entry will be devoted to no-contributory benefits, in other words, unemployment incomes for those who have no right to perceive regular benefits.

UNEMPLOYED, FUCK THEM ALL! (I)

It isn’t a bad-taste joke. Thursday 19^th July Mariano Rajoy (Chief of Government) explained in the Spanish Parliament a new austerity package. When he began to inform on unemployment benefit cuts, Andrea Fabra (MP People’s Party) shouted “Fuck them all!” (regarding to unemployed people)  Beyond her obscene language, Fabra’s words reveal a widespread feeling in right wing parties and European institutions: Spanish high unemployment ratios are partially due to an overprotecting system which discourages unemployed people to look for a job. Let’s see the guidelines of such a generous system:

·        According to the latest Economically Active Population Survey (EPA, in Spanish) data developed by the National Statistics Institute (INE,) there are 5.637.500 unemployed people (24’44%).

·        According to the Ministry of Employment 66’84% the coverage rate of unemployed receiving unemployment benefits in the first quartile of 2012 is 66’84%, (- 5’32% from same period last year even though unemployment is 3’15% higher).

·        How long can unemployed people receive unemployment (regular) benefits? Up to 2 years, depending of the days previously worked.

Days worked	Duration (days) of benefits
From 360 to 539	120
540 – 719	180
720 - 899	240
900 - 1079	300
1.080 - 1259	360
1.260 – 1.439	420
1.440 – 1.619	480
1.620 – 1.799	540
1.800 – 1979	600
1.980 – 2.159	660
Over 2.160	720

So the benefits will last 3 months if an unemployed have worked between a year and a year and a half; one year in case of 3 years-3 years and a half worked, or 2 years in case of more than 6 years worked.

Tomorrow we will take a sight of the unemployment benefit amounts.

Andrea Fabra; MP People's Party

MASSIVE DEMONSTRATIONS ALL OVER SPAIN

Thursday 19^th July evening millions of people marched along the Spanish streets against the austerity measures adopted by the government last Friday and ratified by the parliament this morning. More than 500.000 protesters occupied Madrid city centre and 350.000 Barcelona.  Demonstrations took place in 80 cities all over the country. They were the largest demonstrations since 1981, when citizens took the streets defending democracy against the attempt to a coup d’état.

Let me remark some aspects of the protests beyond a massive people attendance. Demonstrations were organised by the two main Spanish trade unions (CCOO and UGT, 80% of the workers representatives are members of these unions) and supported by smaller trade unions like USO (close to right-wing parties) or CGT (anarchist). Several professional unions (i.e. CSIF, public employees’ union) also joined the marches. For the first time a demonstration organized by working-class trade unions was backed by judge, soldier and “guardia civil” associations (all of them are not allowed to join unions). Consumer organizations, the National Artists’ Federation, the Spanish Youth Council, the National Coordinating Committee of Ranchers and Farmers, the Coordinating Committee of NGO-Development, the Confederation of Parents of Students and lot of women organizations also supported the demonstrations.

Nevertheless one of the most stunning images was the large cortège of police associations marching side by side with “usual” demonstrators. Sardonically several protesters shouted “Today they don’t beat us! Today they are our friends!” By the way, other astonishing event of the day was connected with police! The wheels of 96 anti-riot vehicles were punctured in the parking of one of the biggest police headquarters in Madrid. Obviously the unknown responsible of this sabotage were policemen detached in the station in order to avoid a possible intervention against protesters.

These remarkable mobilizations shouldn’t hide thousands of more discreet ones which are taking place in the last weeks, the most of them out of the union’s control. Every day, at the end of the working day or at the coffee break, public employees go out of their working places and establish road blocks for 10-15 minutes provoking traffic jams all over the cities. Or every Friday, in the latest months, lot of public employees wears in black clothes in their working places as a sign of protest against the social cuts. They are the so called “Mourning Fridays”.

Let me just summarise, Spanish people is fed up with unfair and useless social cuts. The outcome of three years of austerity packages, social and labour cuts is more unemployment, more poverty, more inequality, no economic growth, increasing bond spread, deeper budgetary imbalances and a widespread feeling of frustration between working and middle classes. That’s recall the atmosphere of mitteleuropa in the late 20’s as Stephan Zweig described in his memories. There is only one thing that we lack: a populist party.

"FOR SALE - My future"

I'DONT KNOW IF WE HAVE BEEN RESCUED BUT IT SEEMS TO BE

Lot of news has taken place in Spain in the past days but there is no doubt that the most important one is the new package of austerity measures (social cuts) adopted by the Government last Friday.

One week ago the Eurogroup decided to fuel up to € 100 billion to the Spanish banking sector. After that the Government declared that the loan was not linked to conditionality except for the banks needed of European money. Nevertheless two days later the Council of Ministers approved the most important pack of social cuts targeted on public employees and unemployed. I’ll try to summarise the most relevant measures:

Public employees:

·        Elimination of the extra month’s salary paid at Christmas (around 7’5% of annual salary). Last year the salary of public employees was frozen and the year before was reduced 5’5%.

·        Elimination of three days off and “seniority” days off.  These days aren’t a privilege of public employees as the Spanish Government usually says but an agreed compensation for the lack of increasing salaries in the last decades.  A public employee which has been working for 30 years will loose 9 days off.

·        40% salary reduction in case of sick leave.

·        Reduction of union’s representatives.

·        And it should be reminded that 150.000/ 600.000 public employees will be fired in the next months

Unemployed:  10% reduction of unemployment benefit from the sixth month of perception (only 62% of unemployed touch unemployment benefits).

Increasing TVA:  the Spanish TVA is below the EU average, it’s true. But it doesn’t seem a good idea to increase indirect taxes in the framework of decreasing economic activity. Furthermore, the TVA is counter-distributive and Spain is one of the most unequal member states in the UE.

The aid for young people to rent flats has been reduced 30%.

In the other hand, employers’ social contributions will be reduced in 2012 and 2013.

The streets are burning. Spontaneous demonstrations take place everywhere. Senior officials or policemen join the protesters for the first time. Next time we’ll talk on social protests in Spain.



Spontaneous protesters take the "Gran Vía" (one of the Madrid main streets) in the evening of Sunday 15th July 



EUROCHAMPIONS

Monday, the 2^nd of July. The most of European newspapers front-pages shows pictures of the last Euro 2012 final match in Ukraine. The victory of the Spanish team, “La Roja”, over the Italian one will have a soothing effect on a disheartened society in the next days. On the same date Eurostat reminded that Spain is also the Eurochampion of unemployment. And the day before, “El País”, the best seller Spanish paper, published the following photograph shot in Madrid city centre, in a lively commercial area. It shows people looking for food into a supermarket trash.