I think most of us here have argued that the best way for Spain to come quickly out of recession, would be to leave the Euro.
However I don’t think it’s going to happen, don’t ask me why, but the leaders will try their best to sweat it out.
As Spain switches to more of an exporting nation, it’s possible that by the end of 2013 there will be growth again in the economy. Indeed their balance of payments are now positive, for the first time since entering the Euro zone
The trouble is that this won’t alleviate the situation of millions, who will have to leave the country if they want full-time work – I notice Saudi Arabia made an offer this week to employ up to 100000 Spanish nurses.
An additional question is, how is all that debt to be paid off? At some point surely there will be a writing off of some debt?
The budget yesterday predicted increasing tax revenues – I suspect a fair amount of that will come from expat retirees, so we’ve all been warned in advance. 🙁