——Lets say you chop government in half gradually over a 6 month period. That is going to put a lot of people out of work(government workers) in an economy that cannot absorb them..-——
Think of it this way. These govt employees hinder real productivity or, at best, produce nothing of value. IOW, one quarter of their potential work force might as well be on the dole.
Cutting govt employment by 50% immediately releases 15% (?) of their people for work that is of value to the Spanish people.
Productivity and tax revenues would grow immediately, also because investment would flow in.
DREAM ON!
That aint gonna happen in the short term. In the long term in a capitalist free market society, yes, you are correct. But the sudden contraction of the economy that will result from chopping the government in half will CRASH AND BURN the whole country way before any free market style recovery has a chance to get started.