Tuesday, 4 September 2012

Large business salaries and profits to be scrutinised

©JimenaPulse 2012
Minister says those who have more should set example
MADRID (Agencies) In a radio interview on Onda Cero, the Minister for the Economy and Competition, Luis de Guindos, asked that all vigilance should be aimed at the salaries, profit margins and pensions of the larger companies. "We are asking for an effort from the average Spaniardand especially from those who are in more privileged positions," he said, "It is they who must give an example." Solidarity, he added, is "fundamental" and begins with those who "have more.">>>YOU WILL SOON BE UNABLE TO READ THE REST OF ITEMS SUCH AS THIS UNLESS YOU SUBSCRIBE. Subscriptioninformation will soon be available.>>>
According to the Minister, the government has repeatedly asked the Ibex 35 (Madrid Stock Market index) companies to reduce the the salaries, perks and bonuses of their Board members and top executives, particularly at a time when unemployment is at a record high and many middle class Spaniards are being asked to take stringent cutbacks.

As an example, he used the price of petrol. It is one of the costliest in Europe, despite the fact that it carries less tax than most. He said that the "rocket and feather theory" can be applied here: "it goes up like a rocket when the barrel price rises and comes down like a feather when it is reduced."

Asked about the possibility of the ECB buying Spanish debt, he evaded the question by saying simply that the institution presided by Mario Dragui is "well aware" of the probems in the Euro Zone, and will act accordingly. "The organs of government must be allowed to determine the elements of the potential purchase of debt and the totality of conditions would be required," pointed out, remembering that when it last happened, it caused a relaxation of their commitment to reduce deficits among countries seeking such purchase, something that must avoided this time around.

On the subject of German Chancellor Angela Merkel's visit next week, De Guindos denied that she was coming to impose new measures, but would be here to support the reforms already approved and the plans designed by the Government.

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