August 4, 2012

Catalonia unable to pay salaries

If Rajoy is opening to a full scale bailout of the Spain the situation is also rapidly deteriorating at regional level, Catalonia on the wealthiest regions of Spain is facing an effective shutdown if bailot money will not be provided soon by the central Spanish government.

El Pais reports Catalonia Will Not Pay Hospitals or Private Centers and 100,000 workers are affected.

Google Translation Below:

This month, the Government of Catalona cannot tackle  payments owed to hospitals, schools, residences, social organizations, and children in care centers and workshops. These are the services provided by entities, public and private, funded by the Government.
The move affects up to 7,500 associations and some 100,000 workers, according to the third sector.

The news that the Government could not meet its commitments this month was confirmed on Monday after several days of negotiations with the affected entities. Sources from the Departments of Health and Welfare explained ten days ago it "could not meet the payments this month." Welfare, however, has ensured that other non-contributory pensions paid or the minimum income.

The Catalan Association of Relief calculated that 63% of companies cannot meet the payroll this month.
This is not the first time that the Government is obliged to defer payment. It happened last September when it could only address 65% of the amount and the rest was paid by the end of the year.

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