The impact of the global financial crisis on Spain is becoming heavier. Unemployment in the country prevents the economy from recovering. Spain needs to urgently save the construction industry from its current predicament. Yet there does not seem to be light at the end of the tunnel. Experts do not predict that the Spanish economy will recover within the next four years.
This assessment is bad news for Spain and for the EU. The EU can manage and overcome the crisis within crisis caused by Greece. However should Spain go down and Madrid declare state bankruptcy, the ramifications for the EU will be great. Spain cannot reduce the number of unemployed. This causes unhappiness in the country. The people are angry at falling standards of living. Unemployment among the youth is higher. Young people are concerned about their future. Unemployment in the manufacturing and construction sectors of Spain is very high.
The jobs of present employees are far from being safe. Of those employed in this field, 30 per cent are employed through temporary contracts. They may be turned back from the door when they go to work one morning. Madrid has to revitalise the banking sector. It also needs to come up with ways in which to make the labour market more elastic and reform the pensions system. For if the real sector does not pick up, employment will not increase. In such a case, Spain does not have a chance of escaping the vortex. According to agency news, while the construction sector in Spain was producing 1 million residences annually, it watched in desperation as the number fell to 60,000 with the crisis. In other words, the Spanish construction sector is dead. As a result, the number of people unemployed in Spain has risen to 4 million.
It is even theoretically impossible for the country’s present employment levels to improve the national economy, to pay back the abnormally high public debt and to create new jobs for the unemployed. According to 2009 data, Spain was the 13th largest economy in the world with its USD 1,361 billion GDP for its 47 million population. However, World Bank data show that Spain is the ninth largest economy in the world and the fifth largest in Europe. The global financial crisis raised Spain’s public debt to 125 per cent of national income back in 2005. This was thrice the figure compared to ten years ago. With the collapse of real estate and construction markets in 2007, the banks also faced serious problems. Meanwhile the decline of the construction sector, which accounted for a third of the GDP struck a heavy blow to the economy.
Price of real estate declined rapidly in the process. Production of residences almost ground to a halt, unemployment soared and unpaid loans reached a new record. The process continues. Its impact on Spain’s Basque and Catalan regions becomes greater. In the process, Spain is receiving new wounds. These hurt not only Madrid, but also the EU. It is possible to say that if Spain is not going to recover from the crisis in four years, then neither will the EU.
porno izlegaziantep escort bayanbrazzers