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Spanish unemployment rose to 4.2 million in February 2011,more than 20.3% of the workforce. It’s especially high among younger workers. The contraction of the economy also continues even as Spain implements austerity programmes.
The real question is how long this situation can continue until the government cracks and either requests a bail out to avoid defaults on it’s debt or civil unrest forces an election and a change of direction. Not long in my view, the European sovereign debt crisis has not gone away, just slowly coming to a head.
http://www.bloomberg.com/news/2011-03-02/spanish-registered-unemployment-rises-deepening-eu-divide.html -
A couple of weeks ago Ambrose in the Telegraph was very upbeat about Spain, particularly its export performance.
Although such strength does not manifest itself in jobs, I did find the article an eyeopener
Richard
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A couple of weeks ago Ambrose in the Telegraph was very upbeat about Spain, particularly its export performance.
Although such strength does not manifest itself in jobs, I did find the article an eyeopener
Richard
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I read that article when it was published and like him I thought he had been indulging in too much Rioja. Small export companies however successful do not a national recovery make.
Yesterday Trichet said the ECB would probably increase interest rates at the next monthly meeting. Reason being the German economy is booming and may over heat with inflationary consequences.
That sent the Euro up against all major currencies.
The last thing Spain and the other peripheral countries need right now is increasing interest rates and higher export costs. It will lead to further contraction and unemployment rises. It will also increase mortgage payments in Spain since most mortgages are variable rate.
It is very difficult to see where the economic advantages are for these countries being in the Euro Club.
http://www.news889.com/news/world/article/191882–ecb-president-trichet-says-bank-could-raise-interest-rates-next-month-as-inflation-increases -
I read that article when it was published and like him I thought he had been indulging in too much Rioja. Small export companies however successful do not a national recovery make.
Yesterday Trichet said the ECB would probably increase interest rates at the next monthly meeting. Reason being the German economy is booming and may over heat with inflationary consequences.
That sent the Euro up against all major currencies.
The last thing Spain and the other peripheral countries need right now is increasing interest rates and higher export costs. It will lead to further contraction and unemployment rises. It will also increase mortgage payments in Spain since most mortgages are variable rate.
It is very difficult to see where the economic advantages are for these countries being in the Euro Club.
http://www.news889.com/news/world/article/191882–ecb-president-trichet-says-bank-could-raise-interest-rates-next-month-as-inflation-increases
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