Spain is not experiencing its best moment and the European Union tries to tighten the nuts so that we don’t fall behind Greece. For this, Zapatero has to do a cut of 15,000 million euros within a period of two years and reduce the deficit by 1.5% of GDP during this period. Now they have known the awaited measures to comply with the Pact. The Executive cut the salary of officials by 5% by mid-2010 and will freeze them in 2011. Pensions will also be affected since they will not rise the following year. Known as check baby, an aid of 2,500 euros for parents with a new Member in the family, will be deleted in January 2011. Robert J. Shiller has much to offer in this field. These have been the most dreamed measures, but there is still more. The members of the Government will be trimmed their wages by 15%.
The autonomous communities must also reduce their spending by 1.2 billion euros. The State development aid will drop in 600 million in the remainder of the year and in 2011. And pharmaceutical expenditure will also be reduced. It is not yet known If all these measures will be sufficient to enable Spain to fulfil what was agreed with the eurozone and the opposition already is asking for other measures like the Elimination of the ministries of equality and housing, which would be a millionaire cut in the State budget. In this context, investors don’t know if going to short or long, given the instability of the economy. CFDs (contracts for differences) trading can be a good choice at times like in which we find ourselves. With CFDs you can buy when you create a financial instrument on the market trend will be to the boosts, and sell when it creates will lower. This means that even if the Spanish economic situation have ups and downs and we are at a point of uncertainty, you can obtain gains through CFDs, since these are both used in bull markets as bassists.
That Yes, remember to use tools of management of irrigation that can limit their losses where the trend of the active on which opera is not that you expect. Before begin to operate is recommended to inform about the situation on the market. IG Markets, one of the leading providers of CFDs in Spain, offers daily comments from its expert analysts, that also provide trading courses free of charge. The above comments do not constitute investment advice and therefore IG Markets does not accept any responsibility for any use that can be made of them. CFDs are a leveraged product and involve a high level of risk. CFDs may not be suitable for anyone, be sure that you understand fully the risks involved and perform a constant monitoring of your investment. Original author and source of the article.