Canaries seeks Spain bailout

[Janet]

The Canary Islands have become the sixth autonomous region of Spain to seek a bailout from the national government. The Canaries are seeking just over €750 million from the Fondo de Liquidez Autonómica (Regional Liquidity Fund) which has resources of some €18 billion.

President Paulino Rivero said that Madrid will not impose conditions for the assistance, and the Canaries' economic commissioner, Javier González Ortiz, stressed that the islands have the lowest debt per capita ratio in Spain and that the application was not because the region was insolvent, but because the funding had more accessible conditions than other sources. It's still a bailout, though, and the Canaries joins Andalucia, Catalonia, Murcia, Castilla-La Mancha, and Valencia in requesting help to a total of just over €16 billion. JA

[Janet]

Despite the claim that there would be no conditions to this bailout, it seems there are indeed some. Already it is clear that any monies allocated will not be able to be used for salaries; that suppliers will have to be paid; and that there will have to be public sector cuts. This could actually get quite interesting, and herald some pretty ground-breaking cultural changes in these islands. JA

[Guanche]

The chemists will be happy. The national health owes millions to chemists for drugs given out. After several meetings local chemists are at the verge of turning away people with national health prescriptions.

[Janet]

Absolutely!  That was the first thing that crossed my own mind!!

[Guanche]

There was a programme last night on the 'Mirame' channel. A local tv station I don't normally watch. They have a well known 'anchor man' called Manuel Artiles. He's a well know figure on the islands. Some may have seen him on Tv adverts for 'Maya' department stores.

The show he presented last night was a cut above the rest so much so that wife called me to watch it. He was on a rant to end all rants!
The programme detailed 17 people who, because of house repossessions due to unemployment, now live in a disused milk processing factory near to where one of my brother in laws live. Mostly married men who have had to split their families round family and friends to give them a roof over their heads.
These people are the ones who have exhausted the 'help' entitlement and now receive nothing what so ever from the local government. Their only help is charity. And the red cross for medical attention. One has mental problems and was being treated for a skin infection by the Red cross as we watched.
One 45 year old man stated that he had worked all his life up to three years ago when he was made redundant. The down hill spiral started then. His wife lives with her parents and the two children live with his parents.

The second and for me the most disturbing related to a single mother of a 2 year old child. The woman had no family. Mother and father dead, no siblings and no known family. She to had exhausted the 'help' programme and is now in the hands of charity donations.
Through friends she found one of two derelict council flats in Añaza, near to Carriefour. With local help they reformed the flat putting in a toilet bath and a kitchen. Now it's not great and and not ideal but it's a roof.

In true Spanish style the council moved to evict her. Better to be empty that someone have a roof for nothing!. She ended in front of a female judge who told her the following. "Woman give your child to social services then you wont have to worry about it when your on the street" next!

By now the presenter was in tears offering physical violence to the judge! What he called the authorities, from the head of the government down to this judge was, well it would have made the devil blush. Inciting people to take to the streets. The thing is he's right and I fear there is a growing movement in Spain of very angry people who wouldn't normally say 'boo' to a goose!

Of course non of the authorities were available for comment. However even if they were I doubt if they would see a problem such is their arrogance.

[Janet]

By now the presenter was in tears offering physical violence to the judge! What he called the authorities, from the head of the government down to this judge was, well it would have made the devil blush. Inciting people to take to the streets.

and I have recently been in the company of a fairly high-powered lawyer doing and saying the same.

It will happen here. The only question is when.

[Guanche]

I said in a thread a while ago that my wife told me she was 'frightened'  for our future on the island. I would say frightened is a bit strong. I think concerned is a more appropriate word.
I think once the realisation sinks that this 'Crisis' is not something that will go away when the markets improve, as with some of the richer countries, then the problems will start. One in four are unemployed and the likelihood is that their situation will never change. Thats millions of people with nothing to look forward to and littler chance of improving their lot.

[Myrtle Hogan-Lance]

Major political reform is needed but is it likely?

[Janet]

The Canarian Government has requested further funds from the Fondo de Liquidez Autonómica for 2013, the maximum available to the region of €421.89 million. Attempts to acquire further funds are also being negotiated. The announcement was made by the minister for Economía, Hacienda y Seguridad, Javier González Ortiz, in a press release issued after the regional Government agreed to seek the funds based on an evaluation of the conditions set by Madrid. Sr Ortiz said that there might also be "partial solutions" to the Canaries' finance requirements of €1,100 million, as laid down in the region's budget for 2013. JA