Crisis in Spain: How long?
November 24th, 2009
Elapsed since the year 2007 as the government reported that the debt assumed by the families was not worrisome and that the country was growing at such a rapid pace that social classes would just emerge.
A few months later, in August, broke the major financial crisis and the government itself to Spain said that the crisis did not affect him.
Today, as one could not expect anything INEM acknowledges that the 2008 GDP was overestimated by over 33% and that Spain continues to sink. The worst of the crisis for Spain does not stop moving, as anticipated Alternatively, a business aimed at institutional economic analysis;
"Spain is a catastrophe, led to deflation and unemployment to a level close to social breakdown, brutal housing
crisis and bank insolvencies.
Consider the situation in the country in global terms:
The state model is impossible to finance and more in the current 17 separate legislation that break into pieces the Spanish market and dedicated to raising public funds.
A central bank that does not meet the standards specified in Basel II allows banks to borrow without control and now allows banks to disguise their losses on asset valuations.
The economy continues to sink while the automotive sector lives on subsidies, public education does not provide standards and labor reform is impossible to undertake.
The public spending needed to tackle this situation and tax cuts to increase income, both actions are not sustainable and Spain is facing a general increase in taxes to the country facing a debt not to grow.
Spain without historical memory, no future-Spain. A social injustice that have families at risk of social exclusion and where rewards and lack of culture is neglected investment, development and innovation.
Tags: crisis, economy., financial crisis, Spain, spending, taxes