The EU has finally confirmed Spain will be back in recession in 2012 with an expected 1 percent shrinkage in the economy. The EU has also warned, if Spain expects to keep its head above water and not make a Spanish recession worse, more austerity measures are not a good idea. (Austerity measures were never a good idea — interesting the EU is finally saying so but, as usual, it’s a day late and a dollar short).
You also have to wonder what on earth the EU is thinking as, only last month, they asked Spain to implement new austerity measures after the new Spanish government said they expected a budget shortfall. Now they’re saying “No more”?
Last year, Spain’s economy grew by 0.7 percent and, up until this month, the EU was hoping for more of the same. But with more and more austerity measures being put into place by new prime minister Mariano Rajoy, it’s not that surprising a new Spanish recession is expected.
In fact, just about every economist worth their salt has warned against these continuing European austerity measures, especially as every country that is implementing them is falling further and further into debt and struggling more and more.
Then again, it doesn’t take a rocket scientist to see why (although apparently with the EU, who keeps recommending austerity measures, it does). After all, if a quarter of the population is out of work, and the Spanish government keeps cutting spending, less jobs are being created, there’s more unemployment and less money being spent in Spain. Thus, a shrinking economy.
Honestly, it’s simple. Why does the EU and Rajoy not get it? A 10-year-old could.
Meanwhile, Spain is heading yet again back into recession in 2012. You really have to wonder where these EU clowns got their educations. Or did they?