Spain in fiscal disaster

Memorial on Spanish square, Mostar
Memorial on Spanish square, Mostar

Spain’s fiscal and economical situation is probably bigger disaster then we can imagine. Since Greece declares bankruptcy and request bailout from EU and IMF Spain is in peril to become next bankrupt and fiscally destroyed country. Almost every single day we are reading articles about big investments or state bond dividends in peril, but latest news from Bosnian city of Mostar are showing real situation.

In time of latest Balkan wars Spain took a role in peacekeeping efforts and kept her forces in Bosnia and Herzegovina until present times; small amount of her forces is still stationed in Bosnia. In years of war and after that Spain lost several of her soldiers in region of Herzegovina and in cooperation with City of Mostar they build a memorial on one of the city squares which later becomes Spain square. Several years ago Spanish government decide to help Mostar in reconstruction and improvement of mentioned square; late last year the presented open call to interested companies to present their bid to accomplish prepared projects but last week they said to City administration that they don’t have money.

Spanish ambassador in Bosnia and Herzegovina Alejandro Enrique Alvarogonzales San Martin informed Mostar’s Mayor Mr. Ljubo Beslic that Spanish Finance Ministry is not able to secure 400.000 Euros for this project. Mr. San Martin also said that his government is forced to do so in effort to reduce public deficit and to save state budget. Mostar is not alone in this situation hard fiscal situation forced Spain to rethink and redistribute available budget lines on internal project of state importance.

Ambassador San Martin also informed Mayor Beslic that Spain stands behind this project and that he looks to the future when they would be able to accomplished promised activities in Mostar.

In a same time Thomas Mirow, head of the European Bank of Reconstruction and Development, in interview to German Der Spiegel said that intensity with which Spain and Greece are dealing with questions like budget deficits or competitiveness would have been unthinkable a few months ago.

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