Re: Re: Spanish unemployment rises again

#103049

logan
Participant

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