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Mass protests in Spain over unemployment. Socialist government has adopted austerity plan to cut deficit but unemployment remains the highest in Europe. Fiscal policy is not possible with current deficit problems and monetary policy is in the hands of the ECB which has tightened credit. If Spain joins Greece, Portugal and Ireland in need of bailout it could threaten the euro-zone. The Spanish economy is much larger than that of the other at-risk countries in the euro-zone, so the cost of a bailout would be prohibitive.
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