Buried in the Telegraph's Business Section again (it's a numbers story, see) is Armageddon's report on predictions that Spain is sliding into an economic depression. One forecast is that Spain's unemployment will peak at 25%. There's a huge overhang of unsold properties.
He repeats his theme that the fixed parity of the euro will make it harder for Spain to claw its way out of its economic hole. So will unsuitable interest rates and the eurozone's tight monetary stance. German criteria rule. But the German economic machine has squeezed its wage costs. Spain hasn't and probably can't.
The Spanish may love the euro for the moment, seeing it as their confirmation of modernity. Will that last? Especially as they won't be the only eurozone member in the mire.
0 comments:
Post a Comment