http://www.economist.com/node/21552582
This article describes how the crisis in the Eurozone has not subsided, and why the crisis, especially in Spain and Italy, is likely only to get worse. The Spanish government has failed to address concerns, leading to bond prices to increase in the country as confidence falls. The Spanish budgeted was not cut by as much was hoped, and their economy is in deep recession, leading to significant fears that they won't be able to get themselves out of the crisis. While the world has largely turned to Greece as the failed economy and benchmark of recovery in Europe, Spain may soon send the Eurozone deeper into economic distress.
1 comment:
I agree with your assessment that if Spain experiences any significant distress it will have lasting repercussions to the Eurozone, but even if it does not, there are still problems that need to be addressed.
The missed budget deficit reductions are getting harder to ignore and it could create a public backlash against the EU in countries that have had to take a bailout, like Ireland. Also, if Spain asks for help Italy will not be far behind and that is something the Eurozone cannot afford, either financially or politically. Spain is now the new tipping point, rather than Greece, and holds the fate of the Euro in its hands.
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