Even as EUROPEAN Union (EU) leaders in Brussels gathering on Thursday to agree on a common household, Spain fights to keep his own finances under control. For starters signs of economic recovery in Spain are few and far between shrink with the economy, which is expected to be between 0.5 and 1.7 percent in 2013. This will serve to see that unemployment rising to over 6 million and continues to make a break for consumers, giving out.
Javier Diaz-Gimenez, economics professor at IESE, have said that it will be tough for Spanish Prime Minister Mariano Rajoy, to push through budget cuts in the 2013 and 2014 budgets. If we do not have two deep rounds of public sector regulations that would three years of cuts in total and it will be very hard to push it through, “Diaz-Gimenez has commented.
He has doubts, as further cuts of 4 percent of Spain’s GDP could be cut from the budget over the next two years without causing widespread protests in a country that has seen two general strikes in 2012. Although the world economy has led as a whole, with Asia and Latin America, will grow by 3.3 percent in 2013, Spain seems to be stuck in first gear.
“There are two reasons for this two-speed growth: the countries that have carried out fiscal rules, grow faster, and those who have not suffered,” Pedro Videla has said, economics director at the IESE business school in Madrid. He added that Spain leads more public employees and a higher public sector bill now than in 2009.