President Obama last week “encouraged” Spain to follow through with plans for an austerity budget, which includes a 5 percent pay cut for
the country’s federal employees.
Colleague Chuck Lane endorsed the president’s nudge last week, noting that much of the money the U.S. borrows helps underwrites the
International Monetary Fund, which is helping bankroll the European
bailout that is helping Spain.
“So, via the IMF, the U.S. government has essentially co-signed a piece of Spain’s debt and has a right to make sure the Spanish get
their act together to pay it,” Lane said.
But could Obama request a federal civilian pay cut here if things got worse?