1. Friedrich Ebert Stiftung
Nicosia, 5th of October 2013
José Moisés Martín Carretero

2. 6,0
4,0
1st phase (Gov.
PSOE): EXPANSIVE
POLICIES
GDP
Employment
2nd phase: (Gov.
PSOE): BIAS TO
AUSTERITY
3rd phase: (Gov. PP):
STRONG AUSTERITY
AND HARD CUTTINGS
2,0
0,0
-2,0
-4,0
-6,0
2007Q1
2007Q2
2007Q3
2007Q4
2008Q1
2008Q2
2008Q3
2008Q4
2009Q1
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
-8,0

3. 2009Q1
2009Q2
2009Q3
2009Q4
2010Q1
2010Q2
2010Q3
2010Q4
2011Q1
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2012Q3
2012Q4
2013Q1
2008Q1
2008Q2
2008Q3
2008Q4
Domestic Demand
External Demand
GDP
6,0
4,0
2,0
0,0
-2,0
-4,0
-6,0
-8,0
-10,0

4. Revenues
Expenditure
50
48
46
44
42
40
38
36
34
32
30
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

5. Employment (thousands) (left axis)
Unemployment rate (right axis)
21.000
30
20.000
25
19.000
20
18.000
15
17.000
10
16.000
5
15.000
0

6. 2008
3,6
5,1
4,8
Inflation (ICP)
Real wage increase in collective agreements
Real wage costs
Real labour costs
2010
2,2
0,9
0,4
2011
2,4
0,3
1,2
2012
1,4
-0,5
-0,6
4,1
Wage increase in collective agreements
Wage costs
Labour costs
2009
2,2
3,2
3,5
-0,3
1,8
3,2
2,4
-0,5
2,5
0,4
-0,8
-0,9
0,9
0,7
3,5
3,8
-0,8
-1,4
-2,8
-2,0
-2,9
-2,9
Compensation of Employees. Cumulative change 2010-2012
Greece
Spain
Portugal
Ireland
Slovenia
Italy
Cyprus
Netherlands
Euro area
Estonia
France
Slovakia
Belgium
Finland
Austria
Malta
Luxembourg
Germany
10,0
5,0
0,0
-5,0
-10,0
-15,0
-20,0
-25,0
-30,0
-35,0

11. Spain has
sistematically
underestimated the
budget for
unemployment
Average benefit per
day has decreased

16. 



Internal devaluation has led to a wage
reduction and worsening income distribution.
Internal demand is depressed.
In spite of efforts, Public deficit still being far
away from Stability Pact target.
Social budget cuts rather than social model
modernization. Worst still to come.
Decrease of household disponsable income,
and higher inequality of income, led to an
increase of poverty and social exclusion.