Spain’s Long Economic Nightmare Is Finally Over

[Mordac]

Yep I love Spain to, hope it's turned a corner. But to me they have some real weaknesses, mostly the Euro and debt.

And the fact they don't have much say in Eurozone policy because they're not Germany.

[scooterscot]

And the fact they don't have much say in Eurozone policy because they're not Germany.

The Euro is a strength. It is used be more and more people. It is the 2nd most traded currency in the world accounting for almost 40% of transactions. Yeah a real limitation.

Talking about EU policy and enacting it are two different things. Even still when an individual member doesn't like all the t and i's, they just ignore it, like Italy. Or if the like the UK they send in Cameron to sell our vetos in exchange for favours and then throw our toys out the pram when the bet did not work.

[BlasterBates]

Before the Euro, countries such as Italy, Spain and Portugal issued debt in DM's and pegged their currency to the DM so they had less control of interest rates than they do now, where the ECB not only has a member of the Spanish bank on the rate setting committee, they take account of the state of all countries such as Portugal, Spain, and Italy which combined have more influence than Germany. For this reason these countries are fully committed to the Euro.

Anyone who thinks countries outside the Eurozone have control of interest rates should check out countries outside the Eurozone, and you will see they're forced to jack up and put down their interest rate in line with the Euro.

[tiggat]

Spain's economy grows three times as fast as the UK.


"The Spanish government has raised its forecasts for economic growth this year and now expects the economy to grow by at least 3% in 2017"

Where are all the EU doomsters?



source: https://www.nytimes.com/2017/07/28/b...mployment.html

Austerity obviously works! 10 years of results!

[scooterscot]

Austerity obviously works! 10 years of results!

It seems they no longer have a property bubble. I'd call that a result.

For £214k this: 4 bedroom country house for sale - Spain - Galicia, A Coruña, Pontedeume
Garden 5.000 sq m landscaped + fruit trees

Or this little beauty for £210k: 4 bedroom flat for sale Eastney Road, Southsea, Hampshire

When the UK property bubble bursts it'll be carnage. You're beyond bonkers if you don't think this graph will correct.

[woohoo]

I think it's inevitable that the euro will fail.

I'm not entirely sure what you can do to stop it, could you realistically centralise control of economies to Brussels? I don't mean setting rules about deficits which are never enforced I'm talking about the economies of the EU being fully controlled in one place, probably by the Germans.

I just can't see that happening and that worries me because I'm not sure what will happen if the Euro and then the EU fails.

How can the EU/Euro be fixed, realistically?

[scooterscot]

What is a euro failure exactly? Explain what you think will happen.

[woohoo]

What is a euro failure exactly? Explain what you think will happen.

Scooter you seem oblivious to the obvious.

Italy, Portugal, Spain etc. between them owe around 1 trillion euros in loans.

The amount of money put into the EU to keep the Euro afloat is staggering. On top of that wages in most countries have been cut in an attempt to increase competitiveness. So living standards have decreased for many, this is not a success.

On top of that individual countries are managing their economies and ignoring rules and the consequences of their actions. A bailout is just around the corner because the Euro can't afford a Spain or Italy to fail.

I think it's faith and propaganda holding the Euro in together.

I don't know what will happen if the Euro and the Eu fails. I imagine that Germany will forge alliances with countries near it, the DM would be reintroduced etc.

[darmstadt]

Italy, Portugal, Spain etc. between them owe around 1 trillion euros in loans.

How much does the UK, which is pegged to a single currency, owe?

[_V_]

How much does the UK, which is pegged to a single currency, owe?

Including public, govt, corporate, and private debt, about 500% of GDP.