The European economy is facing an ideological war between those that support neoliberal measures; regulation and restriction so that the deficit is lowered and those that prefer maintaining public spending despite a possible resulting deficit increase.
Cuts in public spending have not helped some countries who are incapable of paying off their debts, but many analysts have warned that the politics of restrictions and regulations exhorted by the IMF can be damaging to the economy as families see their spending power decrease and that in turn lowers consumption seriously affecting industries and the private sector.
In Spain the bursting of the property bubble and the mutual mistrust among banks makes it difficult to see an end to the crisis in a country that has a worryingly high percentage of unemployment and a huge private banking debt. This thesis analyses the role of Spain faced with Europe’s dilemma and its options for ending the crisis.
Filed under: Agrícola, América latina, Análisis estratégico, crisis, Derecho comunitario, deuda, economía, Europa, finanzas, Globalización financiera, Historia contemporánea, Historia económica, Historia política contemporánea, Integración, MERCOSUR, Regionalísmo, Stiglitz, Uncategorized, Unión Europea
