Friday, January 28, 2011

Rabat takes steps to avoid infection

With the exception of the four people who have been slain, the last on Tuesday, "Morocco is, for now, the North African country least affected by the blast of revolution in Tunisia. Even in Benghazi (Libya) produced larger riots in Morocco. Still, the Moroccan authorities do not have it all and take costly measures to prevent a social explosion, at the risk of jeopardizing public finances.

Morocco has a long tradition of spontaneous revolts like the bread, in 1981, which left 66 dead in Casablanca, to which the then interior minister, Driss Basri, called "martyrs of the loaf." The last and most recently, in 2007, was the Sefrou, violent, but no fatalities. Unemployed graduates, 27% of emerging from the universities often also manifest in the large cities.

The products considered basic necessities in Morocco include not only the sugar, oil and wheat, but also hydrocarbons, remain supported by the so-called Compensation Fund to prevent price increases are passed on to the consumer. If the fund did not exist, the price of bread or gas would double.

2010 and was a year of gains. The fund milion spent 26,000 dirhams (2,363 billion), up 126% over budget in grants to the 32 million Moroccans would not notice the increases in their pockets. This year the fund has EUR 1,545 million, equivalent to 2% of GDP, an amount clearly insufficient and will finish shooting.

Proof of this is that Rabat is estimated that a barrel of oil is expected to rise to $ 78 when round 87. "We crossed an area of economic and financial turbulence especially painful, but we are determined to do everything necessary to preserve the purchasing power of citizens," he promised earlier this week, Khalid Naciri, Moroccan government spokesman.

Naciri acknowledged, however, that "last year that was very expensive." "(...) We fear that under current conditions the amount is too high for Morocco ", which lacks energy resources, he added. The spokesman stressed, however, that no effort was made to prevent the spread of Tunisia. "Things must be clear: the Moroccan government does not act according to what happened in other countries," said Naciri.

To improve the provision of the Compensation Fund without increasing the budget deficit, public finances went through a difficult time between January and September 2010 - the Government has cut operating costs and reduced investment by 10%. To avoid shortages in the markets, Rabat also launched on 12 January, a tender to buy 255,000 tonnes of cereals, 154,000 of wheat and 100,000 of barley.

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