General Strikes and Secession Threats Could Derail Austerity

A blog about business and economics.
Sept. 26 2012 8:08 AM

Europe's Austerity Politics Rocked by Greek General Strike, Catalan Secession Threat, Spanish Protests

152773637
MADRID, SPAIN - SEPTEMBER 25: Riot police run behind protesters near Cibeles during demonstrations surrounding the Spanish Parliament on September 25, 2012 in Madrid, Spain.

Photo by Pablo Blazquez Dominguez/Getty Images

Widespread protests erupted across Greece on Wednesday as trade unions called a nationwide strike to contest billions of euros worth of new salary and pension cuts being discussed by the government and its international creditors.

Spanish politics:

The developments unfolded as police officers and protesters clashed before the Parliament building and as Mr. Rajoy comes under intense pressure from investors and his European counterparts to clean up Spain’s banks and public finances, particularly at the regional level.

And in Catalonia:

Now, Catalonian matters are significantly more complex. Artur Mas, the region’s powerful leader, announced Tuesday that he will call a snap regional election Nov. 25.
For many observers, this is a move by Mr. Mas to strengthen his bid for more autonomy, with the explicit threat of a pro-independence referendum looming in the background. Local media is reporting Wednesday that Mr. Mas is meeting with other Catalan parties to prepare such a vote.

Advertisement

As you may recall, it's not that long ago that the world was optimistic that Mario Draghi and the European Central Bank had finally gotten the situation under control. But the politics of the thing essentially prevent a "once and for all" resolution from taking place. That's because the ECB's game is to centralize as much authority in Frankfurt as possible which means that peripheral governments must be continually put to squeeze between the demands of the central bank and the demands of the voters. The fear is that if the ECB goes "too easy" on the Spanish government, that Rajoy will give in to the political unpopularity of the ECB agenda and back off. Spain needs to be perched perennially on the brink of a crisis since its citizens can't be trusted to Ireland/Baltic-style simply go along with austerity budgeting.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

TODAY IN SLATE

Sports Nut

Grandmaster Clash

One of the most amazing feats in chess history just happened, and no one noticed.

The Extraordinary Amicus Brief That Attempts to Explain the Wu-Tang Clan to the Supreme Court Justices

Amazon Is Officially a Gadget Company. Here Are Its Six New Devices.

Do the Celebrities Whose Nude Photos Were Stolen Have a Case Against Apple?

The NFL Explains How It Sees “the Role of the Female”

Future Tense

Amazon Is Now a Gadget Company

Food

How to Order Chinese Food

First, stop thinking of it as “Chinese food.”

Scotland Is Inspiring Secessionists Across America

The Country Where Women Aren’t Allowed to Work Once They’re 36 Weeks’ Pregnant

The XX Factor
Sept. 18 2014 11:40 AM The Country Where Women Aren’t Allowed to Work Once They’re 36 Weeks’ Pregnant
Moneybox
Sept. 17 2014 5:10 PM The Most Awkward Scenario in Which a Man Can Hold a Door for a Woman
  News & Politics
Weigel
Sept. 18 2014 3:19 PM In Defense of Congress Leaving Town Without a New War Vote
  Business
Business Insider
Sept. 18 2014 3:31 PM What Europe Would Look Like If All the Separatist Movements Got Their Way
  Life
Outward
Sept. 18 2014 3:24 PM Symantec Removes Its “Sexual Orientation” Filter
  Double X
The XX Factor
Sept. 18 2014 3:30 PM How Crisis Pregnancy Centers Trick Women
  Slate Plus
Behind the Scenes
Sept. 18 2014 1:23 PM “It’s Not Every Day That You Can Beat the World Champion” An exclusive interview with chess grandmaster Fabiano Caruana.
  Arts
Culturebox
Sept. 18 2014 4:00 PM When The Cosby Show Got “Very Special” Why were The Cosby Show’s Very Special Episodes so much better than every other ’80s sitcom’s?
  Technology
Future Tense
Sept. 18 2014 2:39 PM Here's How to Keep Apple From Sharing Your iPhone Data With the Police
  Health & Science
Science
Sept. 18 2014 3:35 PM Do People Still Die of Rabies? And how do you know if an animal is rabid?
  Sports
Sports Nut
Sept. 18 2014 11:42 AM Grandmaster Clash One of the most amazing feats in chess history just happened, and no one noticed.