Spain Promises Much, Does Little And Will Tap Social Security Reserves For Funding

Tyler Durden's picture

Lots of headlines but little action. Germany will not be pleased:

  • SAENZ SAYS SPAIN PLANS 43 NEW LAWS TO BOLSTER ECONOMY
  • SAENZ SAYS REFORM PLAN IS TO MEET PLEDGES TO EU PARTNERS
  • SPAIN APPROVES DECREE ON WAGE BARGAINING
  • SPAIN APPROVES INCENTIVES FOR ENERGY EFFICIENT VEHICLES: The SEAT VOLT is coming to Ibiza!
  • SAENZ SAYS SPAIN TO PAY EU1,000 SUBSIDY PER EFFICIENT VEHICLE

The kickers:

  • SPANISH BUDGET BASED ON UNCHANGED ECONOMIC FORECASTS, SEES GDP DOWN 0.5%

In other words everything will be massively wrong for the country with the epic bank run. And the one the people have been waiting for:

  • SPAIN TO TAP €3 BILLION FROM SOCIAL SECURITY RESERVES IN ORDER TO FUND LIQUIDITY NEEDS.

Incidentally this is the same fund which has 9 months of pension reserves and is invested in... drumroll... Spanish Bonds!

And cue to the riotcam.