Politics & Policies

Spain / Should the euro be abandoned ?

The mind goes numb. Spanish unemployment jumped by another 237,000 people in the first quarter to 6.2 million, or 27.2 per cent.

The country is losing 3581 jobs a day. There are 1.9 million households where no member of the family has a job.

The unemployment rate has reached 36.8 per cent in Andalusia, Spain’s most populous region. The rate of unemployed youth is 57.2 per cent, rising to 70 per cent in the Canaries.

This is in spite of mass emigration by Spanish youth. El Pais reports that 260,000 young people aged between 16 and 30 left the country last year. A great number have gone to London. Others have gone to Germany, or the Persian Gulf, or further afield. Such is the Spanish diaspora, unseen since the mass exodus after the Civil War, or the Conquista.

Nothing like this has been seen before in modern times. Spain’s jobless crisis in the 1930s was much milder, and for a good reason. Spain was not strapped by the deflationary disaster of the interwar Gold Standard. It went its own way.

The government of Prime Minister Mariano Rajoy said this week that the crisis is ”dramatic” but insisted that the country has regained the confidence of the financial markets and is at last on the road to recovery. Sadly this is not the case. The bond vigilantes have been quiet only because the European Central Bank has promised to backstop the Spanish debt market. The crisis in the real economy is getting worse…

There are a few lone voices willing to utter heresy. I am an avid follower of Ilusion Monetaria, a blog by ex-Bank of Spain economist Miguel Navascues. Navascues calls a spade a spade. He exhorts Spain to break free of European monetary union oppression immediately.

On the left, Catalan economist David Lizoain says the time has come for Social Democrats to ask whether the European monetary union is doing more harm than good and therefore should be dismantled. I leave you with this extract from Lizoain: ”On account of the architecture of the eurozone, the countries of the European periphery cannot engage in a fiscal stimulus, a monetary stimulus, a competitive devaluation, or a financial restructuring. Trapped in the midst of recessionary downward spirals, their policy space is extremely limited. The eurozone framework has generated an economic depression and a crisis of democratic legitimacy. These are fertile conditions for even greater political failures, not for success.

Chosen excerpts by Job Market Monitor


via Spain’s only hope is to abandon the euro.

Related Posts

Spain / Unemployment rate at record 27pc


Spain’s unemployment rate has climbed to a new record of 27.16 per cent in the first quarter of 2013, as a deep recession sparked by the collapse of a property bubble ravages the eurozone’s fourth-largest economy. The jobless rate jumped from 26.02 per as the number of unemployed climbed by 237,400 people to 6.2 million, … Continue reading »

Spain / Population falls


Spain’s official population fell last year for the first time since records began as immigrants fled a five-year on-and-off recession that has sent unemployment soaring. The number of residents fell by 206,000 to 47.1 million, the National Statistics Institute said on Monday, a figure entirely accounted for by the fall in the number of registered … Continue reading »

Spain / Thousands of striking Iberia workers protest layoffs


Thousands of striking workers of Spanish flag-carrier Iberia protested noisily in Madrid Wednesday, furious at management’s plans to cut 3,800 jobs following its merger with British Airways. To the din of horns and smoking firecrackers, workers massed outside the company’s headquarters, waving red and yellow Spanish flags and signs such as “Get your dirty hands … Continue reading »

Europe’s lost generation / Youth unemployment exceeds 60 percent in Greece, is above 50 percent in Spain and tops 40 percent in Portugal


Children across Europe are being driven into poverty by harsh government austerity and youth unemployment is soaring, threatening to create “lost generations” that could fire up a new continental crisis. Global charity Caritas said on Thursday that around three out of every 10 children in Greece, Ireland, Portugal, Italy and Spain are in or have … Continue reading »

Spain / Iberia workers on strike over layoffs


Labor unions representing most workers in Spain’s Iberia airline have called 15 days of strikes to protest the company’s plans to lay off 4,500 workers. The stoppages by Iberia’s ground staff and cabin crews will be held Feb. 18-22, March 4-8 and March 18-22. Raul Melero of the USO union said Wednesday that the strikes … Continue reading »

Spain / Job Without Paycheck


Over the past two years, Ana María Molina Cuevas, 36, has worked five shifts a week in a ceramics factory on the outskirts of this city, hand-rolling paint onto tiles. But at the end of the month, she often went unpaid… With the regional and municipal governments deeply in debt, even workers like bus drivers … Continue reading »

Spain / The Real Jobs Crisis


Hunger. Austerity. Unemployment. Secession. Three people killed at a Halloween party stampede. Not a day goes by without bad news about Spain. With family ties to Spain, I have always considered the Iberian peninsula my second home. After graduating from college in New York in 2009, I moved to Madrid. According to data released by … Continue reading »

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Jobs – Offres d’emploi – US & Canada (Eng. & Fr.)

The Most Popular Job Search Tools

Even More Objectives Statements to customize

Cover Letters – Tools, Tips and Free Cover Letter Templates for Microsoft Office

Follow Job Market Monitor on WordPress.com

Enter your email address to follow this blog and receive notifications of new posts by email.

Follow Job Market Monitor via Twitter



%d bloggers like this: