Spain’s exports share of GDP has jumped from just 23 percent at the outset of 2009 to close to 35 percent in 2013. In March, the country registered its first trade surplus since records began in 1971, becoming the only European Union member whose sales abroad increased during the first quarter. This has unleashed a wave of optimism among foreign media, analysts and the government. “Spain's Crisis Fades as Exports Transform Country”, was the headline of a recent Bloomberg news story. Daniele Antonucci, senior European economist at Morgan Stanley, told CNBC in April that Spanish economic growth will come from outbound sales, a point of view Luis de Guindos, Spain’s minister of economy and … [Read more...] about Turbo-charged exports won’t drive Spain out of the crisis
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Education strike highlights Spain’s teaching problem
Tuesday’s nationwide education strike included representatives from all levels of the sector, marking the first time such an action had been staged in Spain. The strike was propelled by the austerity measures affecting the sector. These include up to €3 billion cuts in spending, the addition of two hours to teachers' weekly classroom timetable and an increase in the pupil-classroom maximum ratio, currently at 25 in primary level and 30 in secondary. Early reports suggested a good level of support among teaching staff. However, while unions claimed an 80-percent turnout, as expected, government figures were decidedly lower. A more pressing question to ask about Tuesday's action, … [Read more...] about Education strike highlights Spain’s teaching problem
Energy debt burden looms large in Spain’s deficit reduction push
To say that the Rajoy government inherited a rough legacy is rather an understatement. The economy appears to be in even worse shape than the incoming Partido Popular government first thought and even as they chop away at public spending, confidence at home and abroad continues to slip. Less than three months in and Rajoy and his party were forced to restructure deficit reduction goals, much to the chagrin of austerity-minded allies in Brussels and Berlin. Unfortunately, the government’s campaign to rein in spending and reduce the deficit does not yet address one particularly large elephant in the room – namely, Spain’s beleaguered energy sector. Sure, we’ve seen the Rajoy government … [Read more...] about Energy debt burden looms large in Spain’s deficit reduction push
It’s the economy, stupid
The young protestors who have converged on Madrid’s Puerta del Sol square – and, increasingly, on squares in cities across Spain – under the banner of the 15-M Movement have myriad demands. They want political change, a more open participative democracy, corrupt politicians out of office, the repeal of “unjust” laws, a reform of benefits for the political class, tax reform, a referendum on the monarchy, a higher minimum wage, the full separation of Church and state… the list goes on. But although the protestors’ demands are heartfelt and sweep across many socio-political areas, it is ultimately – and understandably – the protestors’ wallets that have driven them to camp out in Madrid and … [Read more...] about It’s the economy, stupid