It seems that the Euro is in the news a lot just lately. A few months ago I wrote about Spain, Ireland, Greece, Portugal and Italy all heading for financial problems, and I was right. Ireland seem hell bent on trying to destroy themselves, not only politically, but financially as well, the government seem to object to what’s on the table. Portugal are quickly becoming Chinese with the sale of there government bonds to China to raise money, Italy is just a country where political scandal takes preference over the finances of the country, Spain well Spain is just about as broke as it’s neighbors, only they are to proud to admit it, then we have Greece, what can you say about Greece that will make sense? The Greeks just cannot accept that the bubble has burst, the country is bankrupt, but the citizens still want the good times, and are hell bent on keeping them, at any price, the trouble is no one not even the Chinese wants to help them out financially. Will we see the return of currencies like the Drachma, peso, escudo, lira, and the punt again? I think so and I think it will happen sooner rather than later, as patience and finances are running out very fast, especially in the case of Greece. I was a big critic of the British government when they refused to join the Euro, now I take it all back, and thank the powers that be that we are still independent from the Euro.
The Spanish economy still faces “considerable” risks, the International Monetary Fund has warned
In an annual report, the IMF said the Spanish government had to continue work to reduce public spending, and increase efforts to liberalise its jobs market.
Since last year Madrid has been carrying out austerity measures to reduce the country’s public deficit.
Unlike other highly indebted eurozone nations such as Greece and Portugal, it has not needed an outside bail-out. While the IMF did not comment on whether this remained a possibility for Spain, it warned that financial conditions could deteriorate further in the eurozone, which “could put additional pressure on sovereign and bank funding costs for Spain”.
As a result, the fund said there could be “no let up in the reform momentum” to both help boost Spain economy and ease the concerns of the financial markets.It added that Spain’s 21% unemployment rate – the highest in Europe – was “unacceptably high”.
To help reduce unemployment, the Spanish government is continuing to change the country’s labour laws.Madrid hopes the changes will make firms more willing to take on new staff, because historically it has been difficult for Spanish companies to make staff redundant.
As part of Spain’s continuing austerity measures – which have sparked a number of large protests across the country – the government is also reducing the pensions of public sector workers.Desite the IMF’s warnings, it said Spain was still on track to reduce the country’s public deficit from 9.2% of its annual economic output in 2010, to 6% this year.