By Igor Siletsky
Spanish unemployment has hit a new record high. The number of unemployed people has reached over five million. This is the highest figure in the European Union countries although its neighbors are not lagging far behind. Analysts insist that this is the result of not only the global crisis but also an ill-conceived economic policy.
Unemployment in Europe has reached record high in the past 15 years, and altogether 20 million people have no jobs. The countries where budget restrictions have been introduced – Greece, Italy, Portugal and Spain, suffer the most. Desperation prompts people to stage picketing or rallies. It has become more frequent that the unemployed people try to commit suicide. The current situation in the EC is not only the result of financial upheavals but also the division of the labour market. The European counties have done their best to shift their factories to the third world countries and only created service centres in them, says expert at the National Strategy Institute, Pavel Svyatenkov.
“The global financial crisis has hit the production area, which has been shifted to China. The tourism industry also is facing drawbacks owing a fall in living standards across the world, and people have started travelling less. For one, Spain is not so industrialized a country. It is concentrated on tourism. Moreover, it has a huge debt. And leading countries in Europe, especially Germany, is demanding that Spain fight for budget discipline. This leads to cutting expenses. In these circumstances, it’s impossible to create new jobs, Pavel Svyatenkov said.
Moreover, investors have no confidence in Spain. They believe that recession will prompt Madrid to ask for international loans. However, some analysts, for one Professor Ivan Rodionov, call on not to panic prematurely.
“It’s worthless to exaggerate difficulties facing Europe. The risks are linked first and foremost to the situations that some countries might adhere to populist measures. Perhaps, one or two countries are trying to leave the Euro zone,” Ivan Rodionov said.
The price of such a move will be unbearable for these countries, including Spain. If it happens, it will be even impossible to dream of any progress in the social area. At present, there is no end to the crisis, and economist forecast that the situation will further worsen. They insist that 10 percent unemployment for Europe is not the limit. At the same time they console people saying that economic recession cannot go on for ever, and some day, money will appear in the hands of people. The excellent tourist destinations in Greece, Spain, Italy and Portugal will definitely be filled with tourists.
|Enjoy the article? Then please consider donating today to ensure that Eurasia Review can continue to be able to provide similar content.|