Spain’s current plight highlights perfectly the idiocy of the Eurozone. The country plainly needs a lower currency and 0% interest rates to compete in the global market. Yet the ECB will do nothing to weaken the Euro or reduce it’s rates. As a consequence the countries credit rating will further decline and their bond yields inevitably rise exasperating it’s position.
Financial markets continue to believe the worse is over for the Euro simply because of what Mario Dragi quite deliberately said at press conference some months ago. He has in fact actually done nothing just made promises that if the Germans have anything to do with it will block.
If unemployment reaches 30% of the working population serious civil unrest must surely follow. It’s difficult to see the end game but in my view it’s a very dangerous situation for democracy in Spain.