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The economic crisis in Spain Montserrat Torres. Current Affairs. Universität Konstanz.
<ul><li>Summary  </li></ul><ul><li>Causes </li></ul><ul><li>Impact </li></ul><ul><li>Description </li></ul><ul><li>9 reaso...
Why has it come so far?   There are two main causes : - The coincidence of a  financial crisis   caused by  global  fall  ...
Economic crisis or accumulation of other little crisis?   To the economic crisis we should add: - Credit or financial cris...
Greece vs Spain <ul><li>The economy of Spain is more than four times the size of the economy of Greece! </li></ul><ul><li>...
Greece vs Spain <ul><li>Who is going to save Spain?  </li></ul><ul><li>- There are rumors that EU officials have begun wor...
What kind of impact does it have? - Destruction of jobs: 3.128.900 unemployed - Rise of morosity from 3.3% to 5.4%  - GDP ...
9 Reasons why Spain is a Dead Economy Walking <ul><li>- Spain now has the highest unemployment rate in the entire European...
Spain in crisis <ul><li>- In an effort to stimulate the economy, Spain’s socialist government has been spending the stunni...
Spain in crisis <ul><li>- The total of all public and private debt in Spain has now reached 270% of GDP, this is amazing !...
Spain in crisis <ul><li>The Spanish government has accumulated so much debt that rating agencies have lowered long-term cr...
Spain in crisis <ul><li>There are 1.6 million unsold properties in Spain.  </li></ul><ul><li>That is six times the level p...
Spain in crisis <ul><li>- the new “green economy” in Spain has been a total FLOP.  </li></ul><ul><li>That’s why the energy...
Spain in crisis <ul><li>- Spain’s national debt is so big that they now caught in a debt spiral where anything they do wil...
Spain in crisis <ul><li>- the IMF (International Monetary Fund) says that the Spanish economy is going nowhere fast.  </li...
Spain in crisis <ul><li>- The Spanish population has gotten used to socialist handouts and they are not going to accept pu...
How long will it last? There are doubts about its permanence. Depend on the measures taken by: The European Central Bank T...
Questions or comments? <ul><li>How bad is the global crisis in your respective countries?  </li></ul>
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Spain in crisis

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Transcript of "Spain in crisis"

  1. 1. The economic crisis in Spain Montserrat Torres. Current Affairs. Universität Konstanz.
  2. 2. <ul><li>Summary </li></ul><ul><li>Causes </li></ul><ul><li>Impact </li></ul><ul><li>Description </li></ul><ul><li>9 reason why Spain is a Dead Economy Walking </li></ul><ul><li>Duration </li></ul><ul><li>Questions </li></ul>
  3. 3. Why has it come so far? There are two main causes : - The coincidence of a financial crisis caused by global fall U.S. stock market - The collapse of the building business
  4. 4. Economic crisis or accumulation of other little crisis? To the economic crisis we should add: - Credit or financial crisis - Mortgage Crisis - Crisis of confidence in markets - Global Food Crisis
  5. 5. Greece vs Spain <ul><li>The economy of Spain is more than four times the size of the economy of Greece! </li></ul><ul><li>Spain accounts for 11.5% of eurozone GPD while Greece only accounts for approximately 2.5% ! </li></ul><ul><li>Spain is the 4th largest economy in the 16 nation eurozone and it is the 10th largest economy in the world !! </li></ul><ul><li>Analysts believe that if Spain defaults it would ultimately lead to the breakup of the eurozone. </li></ul>
  6. 6. Greece vs Spain <ul><li>Who is going to save Spain? </li></ul><ul><li>- There are rumors that EU officials have begun work on a bailout package for Spain which is likely to run into the HUNDREDS OF BILLIONS OF DOLLARS! </li></ul><ul><li>“ If Greece goes under, that’s a problem for the eurozone. If Spain goes under, it’s a disaster” ( Forum in Davos, Switzerland) </li></ul>
  7. 7. What kind of impact does it have? - Destruction of jobs: 3.128.900 unemployed - Rise of morosity from 3.3% to 5.4% - GDP fall of 3.8% to 0.9% - ICC fall of 72.3% to 48.9% (International Chamber of Commerce) - Drop in the number of members of the Social Security
  8. 8. 9 Reasons why Spain is a Dead Economy Walking <ul><li>- Spain now has the highest unemployment rate in the entire European Union. More than 20% of working age Spaniards are unemployed. </li></ul><ul><li>Consequence: if people aren’t working they can’t pay taxes and they can’t provide for their families. </li></ul>
  9. 9. Spain in crisis <ul><li>- In an effort to stimulate the economy, Spain’s socialist government has been spending the stunning 11,4% of the GDP (Gross Domestic Product). </li></ul><ul><li>-That is completely unsustainable by any definition!! </li></ul>
  10. 10. Spain in crisis <ul><li>- The total of all public and private debt in Spain has now reached 270% of GDP, this is amazing ! </li></ul>
  11. 11. Spain in crisis <ul><li>The Spanish government has accumulated so much debt that rating agencies have lowered long-term credit rating. </li></ul><ul><li>- These downgrades are making it much more expensive for Spain to finance its debt. </li></ul>
  12. 12. Spain in crisis <ul><li>There are 1.6 million unsold properties in Spain. </li></ul><ul><li>That is six times the level per capita in the United States!!! </li></ul><ul><li>(considering how bad the U.S real state market is, that statistic is VERY alarming) </li></ul>
  13. 13. Spain in crisis <ul><li>- the new “green economy” in Spain has been a total FLOP. </li></ul><ul><li>That’s why the energy prices in Spain have skyrocketed and the nation has actually lost more than two jobs for every job that it has created. </li></ul>
  14. 14. Spain in crisis <ul><li>- Spain’s national debt is so big that they now caught in a debt spiral where anything they do will harm the economy. </li></ul><ul><li>- The truth is that the Spanish government is caught in a “no win” situation. </li></ul>
  15. 15. Spain in crisis <ul><li>- the IMF (International Monetary Fund) says that the Spanish economy is going nowhere fast. </li></ul><ul><li>- they state there will be NO positive GDP growth in Spain until 2011 (and it will be only of 1% ) </li></ul>
  16. 16. Spain in crisis <ul><li>- The Spanish population has gotten used to socialist handouts and they are not going to accept public sector pays cuts. </li></ul><ul><li>- Spain’s two main unions are calling for a major one day general strike and early elections may be forced. </li></ul>
  17. 17. How long will it last? There are doubts about its permanence. Depend on the measures taken by: The European Central Bank The U.S. Federal Reserve The national government The consumers’ confidence appears to be a key factor in the recovery of markets
  18. 18. Questions or comments? <ul><li>How bad is the global crisis in your respective countries? </li></ul>
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