19.4.12

Spanish and Italian Euro's runaway

Neither Italy nor Spain have smart governments. Instead of trying to attract foreign investments through low regulations, and intelligent spend cuts, they are doing exactly the opposite. For instance. Spain has no industry, and almost the only net source of income is going to be tourism. Focus on that. Make it easy to let foreign investors buy real estate, to live in Spain with easy taxes... Healthcare is not where they have to cut expenses, but reorganize so that the National Health System gets the right money from foreigners' interventions (at least they are working on that). But one can find other concepts to cut such as pensions, unemployment, education, and the obvious ones (TVs, political parties, unions...), on which the Government is not going to act.

We are talking beyond Germany and the euro, we are talking about a future with "nueva peseta" or "nuova lira". Spain and Italy have been trying to get taxes everywhere, and guess what it´s happening:
Check out the last months: people are sending their money in Spain and Italy to Germany and Netherlands!! If you pursue your citizens, they will try to runaway. Honestly, the latest political decisions seem the "corralito" is getting closer. The problem is that a lot of nations are wrongly copying this big-brother idea. For instance, Sarkozy wants all French citizens (this is the key word, it should have said residents) to pay for their World income (except working abroad), in a similar way USA does. Fortunately, others are legislating the other way around and, our bet, they are going to be more successful.