Europe: Sink or swim?

Posted: November 18, 2013 in economy
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Spain tries to stay afloat, and in one piece


Giles Tremlett



Like Goya’s famous “Dog half-submerged”, Spain will just hold its head above water in 2014. A five-year, double-dip recession is over. But can Spain swim to the shore of recovery, or will it be sucked back under?

Bond markets trust Spain again and the European Union is slowly loosening the austerity straitjacket. But measures to reduce the government deficit to 5.8% of GDP will mean little growth in 2014. That in turn will mean few if any extra jobs in a country where one in four workers is idle. And without jobs, everything from internal demand to social peace remains fragile.
Two worrying trends will grow: emigration and Spain’s renewed status as a country that receives more money from those living abroad than is sent out by immigrant families. But at least Spain can now concentrate on building up the economy, rather than just halting decline. That …

via Economic Crisis


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