Spain
Nov. 28, 2012
Considering Spain's size and the weakness in it's banks it has become the biggest worry of the European union. After bringing down the center left government of José Luis Rodríguez Zapatero, Mariano Rajoy become the head of the government and with a single party majority behind him they weren't able to meet deficit reduction targets. In Oct. the country's unemployment rate breached 25% and this has caused more division in the finacial elite of Catalonia and their desire for sovereignty. On Nov. 28 the European Commission appoved a 37 billion euro bail out to fund four banks in Spain at a price. The most significant cuts will be made by Bankia, the giant lender whose collapse and request for additional capital in May 2012 led Madrid to negotiate a banking bailout a month later. The other three banks are Novagalicia Banco, Catalunya Banc and Banco de Valencia.
It is unfortunate that the enconmy of Spain is failing. And even with a single party and a new leader conditions continue to get worse. The worsening economy is causing a divide between the rich and the poor as seen through the seperationist party in Catalonia wanting to seperate from Madrid. It seems as though that the European union is begining to lose faith in Spain, hopefully the economy will get better as will the relationship between them and the Union.
Without the assistance of the European Union ad the bailout that was agreed upon Spain would continue down a path where its economy would be so low it hinders its ties and relations with both the European union and other nations around. With Catalonia's talks of somewhat planning and desiring to secede from Spain, it is the most powerful economic region in Spain, with an ever increasing force to drive the wealthy and the poor. A divided nation will stop it from being succesful and will take away from its influence.
http://topics.nytimes.com/top/news/international/countriesandterritories/spain/index.html click here for more.
Considering Spain's size and the weakness in it's banks it has become the biggest worry of the European union. After bringing down the center left government of José Luis Rodríguez Zapatero, Mariano Rajoy become the head of the government and with a single party majority behind him they weren't able to meet deficit reduction targets. In Oct. the country's unemployment rate breached 25% and this has caused more division in the finacial elite of Catalonia and their desire for sovereignty. On Nov. 28 the European Commission appoved a 37 billion euro bail out to fund four banks in Spain at a price. The most significant cuts will be made by Bankia, the giant lender whose collapse and request for additional capital in May 2012 led Madrid to negotiate a banking bailout a month later. The other three banks are Novagalicia Banco, Catalunya Banc and Banco de Valencia.
It is unfortunate that the enconmy of Spain is failing. And even with a single party and a new leader conditions continue to get worse. The worsening economy is causing a divide between the rich and the poor as seen through the seperationist party in Catalonia wanting to seperate from Madrid. It seems as though that the European union is begining to lose faith in Spain, hopefully the economy will get better as will the relationship between them and the Union.
Without the assistance of the European Union ad the bailout that was agreed upon Spain would continue down a path where its economy would be so low it hinders its ties and relations with both the European union and other nations around. With Catalonia's talks of somewhat planning and desiring to secede from Spain, it is the most powerful economic region in Spain, with an ever increasing force to drive the wealthy and the poor. A divided nation will stop it from being succesful and will take away from its influence.
http://topics.nytimes.com/top/news/international/countriesandterritories/spain/index.html click here for more.