Spaniards react with anger, relief to $125 billion bailout plan
Beleaguered nation is warned that even more in Spain will soon be jobless
Sunny Spain, once prideful at being the European Union's fourth largest
economy has been thoroughly humbled and humiliated over the past several
months. Many urban professionals there have seen their dreams go up in
smoke, and Spain currently has the EU's highest unemployment rate, with
one in four without a job. A bailout plan is now in the works to secure
Spanish banks, but it is a hollow victory for many here. Spanish Prime
Minister Mariano Rajoy says even with the plan, even more here will soon
be without work.
Spanish Prime Minister Mariano Rajoy warns that even with the bailout plan, even more in Spain will soon be without work.
A somber Rajoy declared that "This year is going to be a bad one." The conservative politico said that the Spanish economy, bludgeoned with its second recession in three years, will continue to contract the previously predicted 1.7 percent in 2012 even with the help.
Spain is the fourth and largest of the 17 countries of the EU to request a bailout. Spain's economy, in the hierarchy of European nations is the fourth largest after Germany, France and Italy.
Finance ministers of the eurozone said this past weekend that it was prepared to lend up to €100 billion. The funds come from one of three pools of emergency financing eurozone countries can access.
The bailout comes at a very high price for the Spanish people, amounting to €21,000 of new debt for each person. This amount is almost the equivalent of the average salary in a country of 47 million people.
Drastic austerity cuts have rattled and demoralized the populace. Rajoy has ordered higher taxes and has taken away obstacles to hire and fire workers, and cut deep into cherished government programs, including education and national health care.
Rajoy stepped around the word "bailout" in his address over the past weekend. Rajoy insisted that Spain's rescue package is a line of credit. He also noted that the assistance will not come with the outside control as was imposed upon the nations of Greece, Ireland and Portugal when their public finances were bailed out.
On the bright side, German Finance Minister Wolfgang Schaeuble noted that Spain's debt was more favorable than Germany's, with Spain at 78 percent of GDP and Germany's at 82 percent.
In addition, Irish opposition finance spokesman Michael McGrath criticized his government for not having negotiated better terms, saying it needed "to start fighting Ireland's corner in a more vigorous and forceful way."
The financial lifeline to Spanish banks is likely to lessen tension regarding the Spanish economy, five times larger than Greece's and on markets concerned about the country's ability to pay its own way.
Spain's government will make a formal approach for aid once independent audits of the country's banking industry have been carried out.
© 2014 - Distributed by THE NEWS CONSORTIUM
Pope Francis Prayer Intentions for March 2014
Respect for Women: That all cultures may respect the rights and dignity of women.
Vocations: That many young people may accept the Lord’s invitation to consecrate their lives to proclaiming the Gospel.
Rate This Article
Leave a Comment
More Business & Economics News
- $30 trillion increase from $70 trillion between mid-2007 and mid-2013 sends global debt over $100 trillion
- Wowza! Restaurant starts charging diners for Obamacare
- Time banking - where time is BETTER than MONEY
- Google tops Exxon as world's second-most valuable company - for a day
- Bill Gates thinks poverty will be eliminated by 2035... But he's missing this one thing!
- World's richest playboys forgot to address the world's most serious problems between parties in Davos
- CROWDFUNDING: Brother, can you spare - funding for my new movie project?
- Here we go again! Increase the government's borrowing limit before late February, Treasury Secretary warns
- Pope Francis sends a message to Davos elites -- they'd do well to listen
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.