- Spain has been severely affected by unemployment since the 2008 financial crisis, with over 20% overall unemployment and over 50% youth unemployment, the second highest rates in the EU behind Greece.
- High unemployment in Spain is problematic not just for Spain but for the EU as a whole, as Spain is a large economy in the Eurozone and its economic struggles negatively impact other EU countries.
- Spain's unemployment issues are partly due to structural problems like an inflexible labor market, unreformed benefits system, and lack of investment in education, but the crisis greatly exacerbated existing problems and unemployment.
Research Paper on the Economic Impact of the Catolonia CrisisMadlin Deignan
As a part of my Honors MacroEconomics class, we were tasked with researching an idea of our interest in the macro economic environment. With my interest in Spanish language and culture, and intent on studying abroad in Spain, I chose to do my research paper on the Catalonia Crisis, in the midst of its most severe period in time, back in the Spring of 2018. It's interesting looking back on my thoughts then and knowing how the climate has changed over the year.
Spain and Italy were both significantly impacted by the 2008 eurozone crisis. Spain experienced a recession from 2008-2010 due to a housing market crash and high unemployment. Italy has the third largest economy but also holds the largest public debt in the eurozone. Both countries faced issues like high youth unemployment, weak governance, and economic divisions between northern and southern regions that were exacerbated by the crisis. Spain received a €100 billion bailout, while Italy approved a €3.9 billion loan to bailout Monte dei Paschi, its oldest bank.
%22The Rock Star of the Recovery%22 Berggren article on Swedish economic perf...jghberggren
1) Sweden's economy has grown strongly during the recovery, with GDP growth of 5.5% in 2010 and projected growth over 3% in 2011, while unemployment falls, in contrast to struggles in other European countries.
2) Key factors in Sweden's success include a strong commitment to sound public finances through budget surpluses and spending controls, reforms that increased labor market participation by making work pay, and pro-growth structural reforms to markets, education, and pensions.
3) While challenges remain, such as high unemployment among some groups, Sweden's cultural values of tolerance, equality, and social cohesion have supported reforms and a generous welfare system that protects individuals amid economic changes.
The document discusses the 2010 European Economic Crisis, focusing on the issues facing key Eurozone countries like Greece, Spain, Portugal, and Ireland. It analyzes the debt problems and economic troubles in these countries, which threatened the stability of the euro currency. The crisis required international bailouts for struggling nations and raised debates around further European economic integration or allowing countries to leave the Eurozone.
Spain’s disappearing economy demands a bold new approachwiljohanne
Spain's economy continues to contract despite austerity measures, with GDP falling 1.8% in 2012 and unemployment at 26%. The country's austerity-first approach has squeezed demand and caused budget targets to be missed. While reforms are still needed, merely relaxing budget targets is not enough - Spain needs deliberate fiscal support from the EU to ease its economic stress given intolerable unemployment that threatens political stability, especially as the prime minister faces a widening corruption scandal.
Global Manufacturing Downturn Gathers Pace In JulyEdward Hugh
Global manufacturing activity is slowing across many regions due to multiple factors such as the Eurozone debt crisis, slowing growth in China, and quantitative easing measures running out of steam in developed economies. Japan continues to struggle with weak domestic demand and exports hindered by a strong yen. China is experiencing a slowdown driven by adjustments in its real estate sector and declining external demand. The recession in Europe is worsening and spreading from the periphery to core countries like Germany. Italy is also seeing its recession deepen.
This document analyzes the impact of the 2008 global economic crisis on Spain's welfare system and labor market. It finds that while wages and minimum wages increased slightly from 2008-2012, pensions increased to a greater extent. As a result, pension incomes exceeded the incomes of young workers, reducing incentives for young people to remain in the workforce. It also found that from 2006-2011, household expenditure was higher when headed by someone aged 65+ rather than 16-29, indicating a shift in who provides financial support within families. The document argues for reforms to make Spain's welfare system more sustainable, such as increasing the role of the private sector and making benefits more dependent on contributions to the workforce.
Research Paper on the Economic Impact of the Catolonia CrisisMadlin Deignan
As a part of my Honors MacroEconomics class, we were tasked with researching an idea of our interest in the macro economic environment. With my interest in Spanish language and culture, and intent on studying abroad in Spain, I chose to do my research paper on the Catalonia Crisis, in the midst of its most severe period in time, back in the Spring of 2018. It's interesting looking back on my thoughts then and knowing how the climate has changed over the year.
Spain and Italy were both significantly impacted by the 2008 eurozone crisis. Spain experienced a recession from 2008-2010 due to a housing market crash and high unemployment. Italy has the third largest economy but also holds the largest public debt in the eurozone. Both countries faced issues like high youth unemployment, weak governance, and economic divisions between northern and southern regions that were exacerbated by the crisis. Spain received a €100 billion bailout, while Italy approved a €3.9 billion loan to bailout Monte dei Paschi, its oldest bank.
%22The Rock Star of the Recovery%22 Berggren article on Swedish economic perf...jghberggren
1) Sweden's economy has grown strongly during the recovery, with GDP growth of 5.5% in 2010 and projected growth over 3% in 2011, while unemployment falls, in contrast to struggles in other European countries.
2) Key factors in Sweden's success include a strong commitment to sound public finances through budget surpluses and spending controls, reforms that increased labor market participation by making work pay, and pro-growth structural reforms to markets, education, and pensions.
3) While challenges remain, such as high unemployment among some groups, Sweden's cultural values of tolerance, equality, and social cohesion have supported reforms and a generous welfare system that protects individuals amid economic changes.
The document discusses the 2010 European Economic Crisis, focusing on the issues facing key Eurozone countries like Greece, Spain, Portugal, and Ireland. It analyzes the debt problems and economic troubles in these countries, which threatened the stability of the euro currency. The crisis required international bailouts for struggling nations and raised debates around further European economic integration or allowing countries to leave the Eurozone.
Spain’s disappearing economy demands a bold new approachwiljohanne
Spain's economy continues to contract despite austerity measures, with GDP falling 1.8% in 2012 and unemployment at 26%. The country's austerity-first approach has squeezed demand and caused budget targets to be missed. While reforms are still needed, merely relaxing budget targets is not enough - Spain needs deliberate fiscal support from the EU to ease its economic stress given intolerable unemployment that threatens political stability, especially as the prime minister faces a widening corruption scandal.
Global Manufacturing Downturn Gathers Pace In JulyEdward Hugh
Global manufacturing activity is slowing across many regions due to multiple factors such as the Eurozone debt crisis, slowing growth in China, and quantitative easing measures running out of steam in developed economies. Japan continues to struggle with weak domestic demand and exports hindered by a strong yen. China is experiencing a slowdown driven by adjustments in its real estate sector and declining external demand. The recession in Europe is worsening and spreading from the periphery to core countries like Germany. Italy is also seeing its recession deepen.
This document analyzes the impact of the 2008 global economic crisis on Spain's welfare system and labor market. It finds that while wages and minimum wages increased slightly from 2008-2012, pensions increased to a greater extent. As a result, pension incomes exceeded the incomes of young workers, reducing incentives for young people to remain in the workforce. It also found that from 2006-2011, household expenditure was higher when headed by someone aged 65+ rather than 16-29, indicating a shift in who provides financial support within families. The document argues for reforms to make Spain's welfare system more sustainable, such as increasing the role of the private sector and making benefits more dependent on contributions to the workforce.
The document discusses the state of European economies in January 2009 and August 2010. It summarizes that the European Commission raised its 2010 GDP growth forecasts for the EU and eurozone to 1.8% and 1.7% respectively, driven by strong export growth in Germany. However, growth is expected to slow in the second half of the year as the global economy hits a soft patch. Unemployment rates remain elevated across Europe.
The economic crisis in Spain has multiple interconnected causes and severe impacts:
- The crisis was caused by the global financial crisis of 2007-2008 and the collapse of Spain's housing market. This led to issues like high unemployment, rising debt levels, and a recession.
- Spain has been hit harder than Greece, as Spain has a larger economy and its potential default could destabilize the entire eurozone. The EU may need to provide Spain with a bailout package in the hundreds of billions.
- The impacts include high unemployment (over 20%), reduced GDP, higher debt levels, unsold properties, and social unrest with unions calling for strikes. Spain faces a difficult recovery even with international support.
This document provides an overview of the 2010 United Nations Conference on Trade and Development Trade and Development Report. It summarizes that while the global economic recovery remains fragile, developing countries are leading the recovery due to strong countercyclical policies. However, developed countries' recoveries are uneven, with the US recovering domestic demand faster than Germany and Japan which rely more on exports. The recovery in Europe remains weak, and a shift toward fiscal austerity there could risk a double-dip recession. Coordinated global efforts are still needed to rebalance demand and prevent a resurgence of imbalances.
The document is a newsletter from the Centre for European Studies providing updates on actions taken in response to the financial crisis by EU member states and worldwide. The foreword discusses how the European socialists' hopes of benefitting politically from the crisis were dashed in the European elections, with the centre-right parties maintaining or increasing their seats. It analyzes reasons for this, including that the centre-right adopted interventionist policies and had a reputation for stronger economic competence. The newsletter then provides brief updates on developments in individual EU member states relating to the financial crisis and its economic impacts.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Global Wage Report 2014/15 - Wages and Income InequalityDr Lendy Spires
The 2014/15 edition examines the link between wages and inequality at the household level. It shows that wages constitute the largest single source of income for households with at least one member of working age in most countries and points to changes in wages and paid employment as key factors underlying recent trends in inequality. The report also considers wage gaps between certain groups, such as those between women and men, migrants and nationals, and workers in the informal and formal economy.
Inequality can be addressed through policies that affect wage distribution directly or indirectly, as well as through fiscal redistribution. However, increasing inequality in the labour market places a heavier burden on efforts to reduce inequality through taxes and transfers. The report thus emphasizes the need for combined policy action that includes minimum wages, strengthened collective bargaining, interventions to eliminate wage gaps, the promotion of paid employment and redistribution through taxes and transfers.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
The Finnish unemployment rose in the early 1990’s from three to eighteen percent in four years. Unemployment has then decreased to the average European level, being 9.0 percent in January 2003. In this paper, we describe the shocks leading to this unforeseen increase in unemployment. We then discuss the role of labour market institutions in the adjustment process that has brought unemployment back to ‘normal’ levels. We argue that these institutions cannot be blamed for the increase in unemployment, but that more flexible institutions could have lead to a more rapid decline in unemployment.
ESADE TARGET is interested in recording the deviation produced by each forecast. For this reason ESADE has developed a reliability indicator for the forecasts made by major national and international organisations.
Emerging market economies were major beneficiaries of the economic boom before 2007. More recently, they have become victims of the global financial crisis. Their future development depends, to a large extent, on global economic prospects. Today the global economy and the European economy are much more integrated and interdependent than they were ten or twenty years ago. Every country must recognize its limited economic sovereignty and must be prepared to deal with the consequences of global macroeconomic fluctuations.
The statistical data for 2009 provides a mixed picture with respect to the impact of the crisison various groups of countries and individual economies. On average, Central and Eastern Europe experienced a smaller output decline than the Euro area and the entire EU while the CIS, especially its European part, contracted more dramatically. However, there was a deep differentiation within each country group. Looking globally, richer countries, which are more open to trade and in which the banking sector plays a larger role and which rely more on external financing, suffered more than less sophisticated economies, which are less dependent on trade and credit (especially from external sources). With some exceptions, the previous good growth performance helped rather than handicapped countries in the CEE and CIS regions in the crisis year of 2009.
The post-crisis recovery has been rather modest and incomplete. It remains vulnerable to new shocks (like the Greek Fiscal crisis), the danger of sovereign default and other uncertainties. Full post-crisis recovery and increasing potential growth will require far going economic and institutional reforms on both national, regional (e.g., EU) and global levels.
Authored by: Marek Dąbrowski
Published in 2010
The document provides an economic summary and analysis of recent economic indicators and trends in Europe. It discusses:
1) Government deficits increasing in the EA16 and EU27 in 2009 while GDP fell, with the largest deficits recorded in Greece, Ireland, the UK, Spain, and others.
2) GDP growth of 0.4% in the EA16 and EU27 in Q3 2010, with industrial production falling but inflation and unemployment remaining steady.
3) Issues facing the Irish economy including a large budget deficit, banking troubles, and negotiations over austerity measures and a bailout package from the EU and IMF.
4) Other EU countries facing debt problems and the potential for countries like Portugal and Spain to
The document analyzes the impact of budget deficits on inflation in the Democratic Republic of Congo. It discusses how budget deficits are often caused by expansionary fiscal policies and unstable commodity prices in developing countries. The DRC has faced chronic budget deficits since 1980, as revenues have not kept up with rising expenditures. This has led the government to finance deficits through borrowing from banks and the central bank. Empirical analysis will estimate the effects of budget deficits and other fiscal variables on inflation in the DRC to determine the relationship between deficits and prices. The study covers the period from 1970 to 2005 and aims to provide insights to help economic growth.
The document analyzes two potential growth paths for Poland's economy by 2025. The first, more conservative path would see Poland's GDP grow at 2.6% annually, remaining a middle-income economy at 70% of the EU-15 average GDP per capita level. The second, more ambitious path would involve accelerating growth through policies to boost productivity, investments, and labor force participation. This could allow Poland to become a globally competitive growth engine for Europe, reaching GDP per capita levels close to Italy, Spain and Portugal. The report aims to provide recommendations for policies to realize the faster growth scenario and for Poland to close its productivity gap with Western Europe.
The report provides an analysis of global employment trends in 2012 and 2013. It finds that global labour markets continue to worsen, with unemployment increasing by 4 million in 2012 to a total of 197 million unemployed worldwide. Growth has decelerated and a double-dip recession has occurred in many advanced economies, spilling over into developing economies through international trade and capital flows. Policy incoherence and uncertainty have prevented stronger investment and job creation. The nature and length of the crisis have exacerbated labour market mismatches and downside risks.
The global economy is expected to strengthen over the next two years, despite a downgrade of growth prospects for some developing economies and economies in transition, according to the UN World Economic Situation and Prospects (WESP) 2014 mid-year update, launched on 21 May, 2014. Global growth has been revised slightly lower from the forecasts presented in the WESP 2014. Growth of world gross product (WGP) is now projected at 2.8 per cent in 2014 and 3.2 per cent in 2015, up from 2.2 per cent in 2013. However, this pace of expansion is still low compared to the growth path before the 2008 global financial crisis.
For more information: http://www.un.org/en/development/desa/policy/wesp/index.shtml
CU M Com-MEBE-MOD-1-National Income Accounting-Lecture-1Dr. Subir Maitra
This document provides an overview of macroeconomics and the key issues addressed in macroeconomics. It discusses long-term economic growth, business cycles and fluctuations in economic activity, unemployment, inflation, international economic links, and the role of fiscal and monetary policy in economic performance. The main topics in macroeconomics are determining a nation's long-run growth, causes of short-term economic fluctuations, sources of unemployment, drivers of inflation, effects of globalization and trade, and how government policy can influence prosperity and stability.
1) The author upgrades European equities to Overweight due to improved political and economic conditions in Europe. Political risk has receded following centrist election victories in France and improving economic data across major European countries.
2) Earnings growth in Europe has surprised to the upside, with revenues and earnings growing around 9% and 20% respectively in the recent reporting season, well above comparable US growth. However, European stock valuations remain attractive relative to US stocks.
3) Key factors that could further improve the European investment case include ongoing economic improvements, ECB maintaining accommodative monetary policy, and stability in bond markets and inflation. Political risks remain from the Italian elections.
Strategy Position Paper of the Ukrainian Association for the Club of RomeViktor Halasiuk, PhD
The document outlines Ukraine's development challenges and proposes a strategy. It notes that while Ukraine has significant human and natural resources, its Soviet-era economy is inefficient and the environment neglected. Over 25 years, Ukraine's GDP contracted 35% amid deindustrialization, corruption and oligarchy. The strategy proposes adapting the EU's eco-social market model to spur sustainable and equitable growth through increased investment, exports, employment and purchasing power while reducing corruption, environmental depletion and human capital loss.
Este documento presenta la guía docente para una clase de primer grado sobre las letras F y J. La clase consta de tres partes: inicio, desarrollo y cierre. En la parte de inicio, los estudiantes verán videos sobre las nuevas letras y discutirán palabras que las contengan. En el desarrollo, jugarán juegos interactivos en línea para practicar las letras. También leerán un poema que las presenta. En el cierre, el docente evaluará el aprendizaje y conversará con los estudiantes sobre lo que
The document discusses using experimental and nonexperimental datasets to analyze the effects of a job training program. Regression analysis was performed on both datasets. The experimental dataset, using a randomly assigned control group, produced a consistent positive treatment effect estimate of around $800. The nonexperimental dataset, using a non-random comparison group, produced a highly negative initial treatment effect estimate of -$16,000 that reduced but remained biased as covariates were added due to selection and omitted variable bias from the non-random comparison group. The study concludes experimental datasets must be used to obtain an unbiased treatment effect estimate.
This document discusses food security and defines the concept. It introduces that food security is a flexible concept with many definitions. Regulations around genetically modified foods and crops are discussed as a key tool to address the challenge of feeding a growing population, but high costs and regulatory uncertainty have slowed innovation. The document also mentions that hydroponics is a local solution that can feed families and entire cities at both the micro and macro levels.
The document discusses the state of European economies in January 2009 and August 2010. It summarizes that the European Commission raised its 2010 GDP growth forecasts for the EU and eurozone to 1.8% and 1.7% respectively, driven by strong export growth in Germany. However, growth is expected to slow in the second half of the year as the global economy hits a soft patch. Unemployment rates remain elevated across Europe.
The economic crisis in Spain has multiple interconnected causes and severe impacts:
- The crisis was caused by the global financial crisis of 2007-2008 and the collapse of Spain's housing market. This led to issues like high unemployment, rising debt levels, and a recession.
- Spain has been hit harder than Greece, as Spain has a larger economy and its potential default could destabilize the entire eurozone. The EU may need to provide Spain with a bailout package in the hundreds of billions.
- The impacts include high unemployment (over 20%), reduced GDP, higher debt levels, unsold properties, and social unrest with unions calling for strikes. Spain faces a difficult recovery even with international support.
This document provides an overview of the 2010 United Nations Conference on Trade and Development Trade and Development Report. It summarizes that while the global economic recovery remains fragile, developing countries are leading the recovery due to strong countercyclical policies. However, developed countries' recoveries are uneven, with the US recovering domestic demand faster than Germany and Japan which rely more on exports. The recovery in Europe remains weak, and a shift toward fiscal austerity there could risk a double-dip recession. Coordinated global efforts are still needed to rebalance demand and prevent a resurgence of imbalances.
The document is a newsletter from the Centre for European Studies providing updates on actions taken in response to the financial crisis by EU member states and worldwide. The foreword discusses how the European socialists' hopes of benefitting politically from the crisis were dashed in the European elections, with the centre-right parties maintaining or increasing their seats. It analyzes reasons for this, including that the centre-right adopted interventionist policies and had a reputation for stronger economic competence. The newsletter then provides brief updates on developments in individual EU member states relating to the financial crisis and its economic impacts.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Global Wage Report 2014/15 - Wages and Income InequalityDr Lendy Spires
The 2014/15 edition examines the link between wages and inequality at the household level. It shows that wages constitute the largest single source of income for households with at least one member of working age in most countries and points to changes in wages and paid employment as key factors underlying recent trends in inequality. The report also considers wage gaps between certain groups, such as those between women and men, migrants and nationals, and workers in the informal and formal economy.
Inequality can be addressed through policies that affect wage distribution directly or indirectly, as well as through fiscal redistribution. However, increasing inequality in the labour market places a heavier burden on efforts to reduce inequality through taxes and transfers. The report thus emphasizes the need for combined policy action that includes minimum wages, strengthened collective bargaining, interventions to eliminate wage gaps, the promotion of paid employment and redistribution through taxes and transfers.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
The Finnish unemployment rose in the early 1990’s from three to eighteen percent in four years. Unemployment has then decreased to the average European level, being 9.0 percent in January 2003. In this paper, we describe the shocks leading to this unforeseen increase in unemployment. We then discuss the role of labour market institutions in the adjustment process that has brought unemployment back to ‘normal’ levels. We argue that these institutions cannot be blamed for the increase in unemployment, but that more flexible institutions could have lead to a more rapid decline in unemployment.
ESADE TARGET is interested in recording the deviation produced by each forecast. For this reason ESADE has developed a reliability indicator for the forecasts made by major national and international organisations.
Emerging market economies were major beneficiaries of the economic boom before 2007. More recently, they have become victims of the global financial crisis. Their future development depends, to a large extent, on global economic prospects. Today the global economy and the European economy are much more integrated and interdependent than they were ten or twenty years ago. Every country must recognize its limited economic sovereignty and must be prepared to deal with the consequences of global macroeconomic fluctuations.
The statistical data for 2009 provides a mixed picture with respect to the impact of the crisison various groups of countries and individual economies. On average, Central and Eastern Europe experienced a smaller output decline than the Euro area and the entire EU while the CIS, especially its European part, contracted more dramatically. However, there was a deep differentiation within each country group. Looking globally, richer countries, which are more open to trade and in which the banking sector plays a larger role and which rely more on external financing, suffered more than less sophisticated economies, which are less dependent on trade and credit (especially from external sources). With some exceptions, the previous good growth performance helped rather than handicapped countries in the CEE and CIS regions in the crisis year of 2009.
The post-crisis recovery has been rather modest and incomplete. It remains vulnerable to new shocks (like the Greek Fiscal crisis), the danger of sovereign default and other uncertainties. Full post-crisis recovery and increasing potential growth will require far going economic and institutional reforms on both national, regional (e.g., EU) and global levels.
Authored by: Marek Dąbrowski
Published in 2010
The document provides an economic summary and analysis of recent economic indicators and trends in Europe. It discusses:
1) Government deficits increasing in the EA16 and EU27 in 2009 while GDP fell, with the largest deficits recorded in Greece, Ireland, the UK, Spain, and others.
2) GDP growth of 0.4% in the EA16 and EU27 in Q3 2010, with industrial production falling but inflation and unemployment remaining steady.
3) Issues facing the Irish economy including a large budget deficit, banking troubles, and negotiations over austerity measures and a bailout package from the EU and IMF.
4) Other EU countries facing debt problems and the potential for countries like Portugal and Spain to
The document analyzes the impact of budget deficits on inflation in the Democratic Republic of Congo. It discusses how budget deficits are often caused by expansionary fiscal policies and unstable commodity prices in developing countries. The DRC has faced chronic budget deficits since 1980, as revenues have not kept up with rising expenditures. This has led the government to finance deficits through borrowing from banks and the central bank. Empirical analysis will estimate the effects of budget deficits and other fiscal variables on inflation in the DRC to determine the relationship between deficits and prices. The study covers the period from 1970 to 2005 and aims to provide insights to help economic growth.
The document analyzes two potential growth paths for Poland's economy by 2025. The first, more conservative path would see Poland's GDP grow at 2.6% annually, remaining a middle-income economy at 70% of the EU-15 average GDP per capita level. The second, more ambitious path would involve accelerating growth through policies to boost productivity, investments, and labor force participation. This could allow Poland to become a globally competitive growth engine for Europe, reaching GDP per capita levels close to Italy, Spain and Portugal. The report aims to provide recommendations for policies to realize the faster growth scenario and for Poland to close its productivity gap with Western Europe.
The report provides an analysis of global employment trends in 2012 and 2013. It finds that global labour markets continue to worsen, with unemployment increasing by 4 million in 2012 to a total of 197 million unemployed worldwide. Growth has decelerated and a double-dip recession has occurred in many advanced economies, spilling over into developing economies through international trade and capital flows. Policy incoherence and uncertainty have prevented stronger investment and job creation. The nature and length of the crisis have exacerbated labour market mismatches and downside risks.
The global economy is expected to strengthen over the next two years, despite a downgrade of growth prospects for some developing economies and economies in transition, according to the UN World Economic Situation and Prospects (WESP) 2014 mid-year update, launched on 21 May, 2014. Global growth has been revised slightly lower from the forecasts presented in the WESP 2014. Growth of world gross product (WGP) is now projected at 2.8 per cent in 2014 and 3.2 per cent in 2015, up from 2.2 per cent in 2013. However, this pace of expansion is still low compared to the growth path before the 2008 global financial crisis.
For more information: http://www.un.org/en/development/desa/policy/wesp/index.shtml
CU M Com-MEBE-MOD-1-National Income Accounting-Lecture-1Dr. Subir Maitra
This document provides an overview of macroeconomics and the key issues addressed in macroeconomics. It discusses long-term economic growth, business cycles and fluctuations in economic activity, unemployment, inflation, international economic links, and the role of fiscal and monetary policy in economic performance. The main topics in macroeconomics are determining a nation's long-run growth, causes of short-term economic fluctuations, sources of unemployment, drivers of inflation, effects of globalization and trade, and how government policy can influence prosperity and stability.
1) The author upgrades European equities to Overweight due to improved political and economic conditions in Europe. Political risk has receded following centrist election victories in France and improving economic data across major European countries.
2) Earnings growth in Europe has surprised to the upside, with revenues and earnings growing around 9% and 20% respectively in the recent reporting season, well above comparable US growth. However, European stock valuations remain attractive relative to US stocks.
3) Key factors that could further improve the European investment case include ongoing economic improvements, ECB maintaining accommodative monetary policy, and stability in bond markets and inflation. Political risks remain from the Italian elections.
Strategy Position Paper of the Ukrainian Association for the Club of RomeViktor Halasiuk, PhD
The document outlines Ukraine's development challenges and proposes a strategy. It notes that while Ukraine has significant human and natural resources, its Soviet-era economy is inefficient and the environment neglected. Over 25 years, Ukraine's GDP contracted 35% amid deindustrialization, corruption and oligarchy. The strategy proposes adapting the EU's eco-social market model to spur sustainable and equitable growth through increased investment, exports, employment and purchasing power while reducing corruption, environmental depletion and human capital loss.
Este documento presenta la guía docente para una clase de primer grado sobre las letras F y J. La clase consta de tres partes: inicio, desarrollo y cierre. En la parte de inicio, los estudiantes verán videos sobre las nuevas letras y discutirán palabras que las contengan. En el desarrollo, jugarán juegos interactivos en línea para practicar las letras. También leerán un poema que las presenta. En el cierre, el docente evaluará el aprendizaje y conversará con los estudiantes sobre lo que
The document discusses using experimental and nonexperimental datasets to analyze the effects of a job training program. Regression analysis was performed on both datasets. The experimental dataset, using a randomly assigned control group, produced a consistent positive treatment effect estimate of around $800. The nonexperimental dataset, using a non-random comparison group, produced a highly negative initial treatment effect estimate of -$16,000 that reduced but remained biased as covariates were added due to selection and omitted variable bias from the non-random comparison group. The study concludes experimental datasets must be used to obtain an unbiased treatment effect estimate.
This document discusses food security and defines the concept. It introduces that food security is a flexible concept with many definitions. Regulations around genetically modified foods and crops are discussed as a key tool to address the challenge of feeding a growing population, but high costs and regulatory uncertainty have slowed innovation. The document also mentions that hydroponics is a local solution that can feed families and entire cities at both the micro and macro levels.
El documento presenta información sobre la transformada de Laplace en el contexto de una clase de Teoría de Control en la Escuela de Ingeniería Eléctrica y Electrónica del Instituto Universitario Politécnico "Santiago Mariño" en Maturín, Venezuela.
Raymond Jones has over 19 years of experience in the United States Marine Corps where he held various roles including leading over 1,200 entry level Marines in basic infantry skills. He now works as a private investigator for Advantage Surveillance, responsible for acquiring documentation through surveillance. Jones has additional experience in security from his time at Securitas/Quintiles and is currently pursuing a Criminal Justice degree from Miller Motte Technical College.
Este documento discute el uso de la pizarra digital interactiva (PDI) como recurso didáctico para mejorar la experiencia educativa de los estudiantes universitarios. Analiza cómo la PDI puede complementarse con mapas conceptuales y sistemas interactivos de respuesta para aumentar la interactividad. También propone ejemplos de cómo combinar la PDI con estas herramientas para fomentar la participación grupal y la construcción colaborativa del conocimiento.
El documento resume las principales políticas educativas relacionadas con la gestión de las tecnologías de la información y la comunicación (TIC) en varias comunidades autónomas españolas. Explica que cada comunidad implementa proyectos, programas y planes para mejorar la infraestructura tecnológica de los centros educativos, el acceso de las familias a la información y la formación del profesorado y el alumnado en el uso de las TIC. Luego describe algunas de las iniciativas clave en comunidades como el País Vas
Modernize Your Content Management Platform: What's Next After Documentum?Perficient, Inc.
With the recent acquisition announcement of Documentum by OpenText, questions have been raised about future enhancements and support for the platform. Many companies are looking for alternative platforms to drive their business in the future, seeking out modern and innovative enterprise content management (ECM) options to transform their legacy on-premises technology.
In this SlideShare Perficient and John Newton, ECM industry expert, co-founder of Documentum, and founder/CTO of Alfresco discussed:
What’s next in ECM?
A modern and innovative approach to ECM and digital transformation
Best practices in migrating from Documentum to an alternative ECM platform
The unemployment in Spain is higher than the EU average, with over 5 million unemployed people according to EPA statistics. Youth unemployment stands at 55%, second highest in the EU after Greece, with close to 1.7 million Spaniards under 30 out of work. Spain suffered greatly in the global financial crisis starting in 2008, with its housing bubble bursting and GDP declining sharply, increasing unemployment and causing major bankruptcies. The education system is seen as not adequately preparing students for work and becoming less accessible due to rising costs. Proposed solutions include creating new jobs, reforming education, changing societal attitudes, reducing debt, and prosecuting corrupt politicians.
Ivo Pezzuto on the EU integration Process: "More Catalonias to Come. Spain a ...Dr. Ivo Pezzuto
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1. An Economic Calamity
A Look at the Effects of High Unemployment on Spain
and
The European Union
Carly Tucker
SISU-383-001
Professor Martin
May 2, 2016
2. 2
Executive Summary: Spain’s Unemployment Predicament
Unemployment has resulted in an economic setback for a number of member
states and consequently the European Union as a whole. In particular, Spain is a country
that has been afflicted with vast unemployment, especially amongst its youth, a pertinent
problem of which we must be critically aware given its affect on the rest of the EU. The
situation involving recent college graduates, those eligible to work between the ages of
18 and 25, is of immense concern for Spain and its governing bodies. Overall, these are
bright and ambitious young people forced to take unfulfilling positions well below their
educational acumen level. Worse, some have found that there are no jobs at all when
they have diplomas in hand, the result of a beyond sluggish economy within the Iberian
Peninsula. As a result, the country now reluctantly poses one of the greatest
unemployment threats to the European Union. With a rate of over 20% for those without
work, and a youth statistic that is double that staggering figure, Spain has the second
highest unemployment rate, finding itself in the unenviable company of Greece.
The subsequent pages of this report find that Spain has established and attempted
to implement structural reform amongst a variety of sectors. However, the rate and
degree at which it is doing so has not proven to be adequate. The GDP is growing, but not
at a substantial rate, thus leading to a variety of damaging results. The high
unemployment amongst youth has led to a rise in radical new party politics, an increased
level of Euroscepticism, a negative atmosphere and attitude within the labor market and
has had dire effects on the country and its population. For instance, there have been
3. 3
findings that due to Spain’s high unemployment, there have, in turn, been low fertility
rates which will have a critical effect on the future economics of Spain.
My research has also led me to discover that while all of the European Union has
experienced some sort of economic setback from the financial crisis, Spain’s has been
much more drastic, due to institutional and economic differences between it and other
countries. There is a belief that Spain’s structural issues within its labor market, its
unreformed benefits system and a lack of government investment in crucial areas, such as
education and innovation, have led to its unemployment predicament.
The European Union’s Unemployment Situation: An In-Depth Look at Spain
Since the financial crisis of 2008 rocked and disrupted the world’s economies, the
European Union has struggled to recover economically. The challenge of unemployment
is a very important policy issue confronting the EU due to the severe recession and its
inflexible labor markets. Cyclical unemployment within the EU could possibly become
structural. Additionally, unemployment poses a huge risk to the EU collectively due to
the relationship between the economy and politics. The woes of the economy will
become political woes, as the unemployed are more apt to distrust politicians and
therefore are more apt to distrust the EU as a whole. This distrust will lead to increased
Eurosceptism and, potentially, the toppling of the European Union as an entity.
Background and Context
The 2008 financial disaster brought the deepest recession Europe has seen since
the 1930’s. The post Cold- War in the European Union era was marked by much
4. 4
economic advancement. Within a variety of treaties, the EU saw the completion of the
Single Market, the implementation of a single currency and plans to reform institutions
and to focus more resources on employment. According to a report from the European
Commission, the financial crisis was preceded by a period of “rapid credit growth, low-
risk premiums, abundant liquidity, and the development of real estate bubbles” (The
European Commission, 2009). All of this overstretched leveraging created a vulnerable
financial sector, thus allowing the United States’ economic crisis to spill over and affect
the European Union’s overall economy.1
As a consequence of this toppling, there were
adverse effects on the real EU economy, particularly on loan books, asset valuations and
credit supply. Some countries, however, were more vulnerable than others due to current
account positions, exposure to real estate bubbles or the presence of a large financial
center.2
In addition to the effects on economic activity, the labor market across the EU
has been negatively affected, leading to a rise in unemployment- a term that accounts for
those actively seeking jobs but cannot find them-a rise that has been felt more strongly in
some parts of the Eurozone than others.
While all of the European Union economies experienced hardship during the
financial crisis in ’08, Spain was arguably one of the most severely hit. Since the crisis,
while many of the EU countries have recovered, Spain has not. Spain has the second
highest unemployment rate behind Greece, with over 20% overall unemployment and
over 50% youth unemployment. The fact that Spain’s unemployment is so high is
puzzling for there is no one clear explanation. Many believe that Spain’s structural issues
1
István P. Székely and Paul van den Noord, “Economic Crisis in Europe: Cause, Consequences and
Responses,” VOX European Union, October 6, 2009, accessed March 27, 2016,
http://www.voxeu.org/article/economic-crisis-europe-cause-consequences-and-responses.
2 The European Commission, “Economic Crisis in Europe: Causes, Consequences and Responses,”
Economic and Financial Affairs, July 2009, accessed on March 27th
, 2016.
5. 5
within its labor market, its unreformed benefits system and a lack of government
investment in crucial areas have led to its unemployment predicament.3
With such high
unemployment among its youth, a sector that is defined as ages 18 to 25, and without any
talk or implementation by the government of structural measures, Spain will only
continue to experience insufficient growth.
From the latter half of the 1990’s up until 2007, Spain experienced a ‘Golden
Decade’ marked by rapid economic growth. By the end of its growth era, Spain’s GDP
per capita had reached 90% of the EU-15 average. This long “pre-crisis” period was
characterized by high employment and growth rates brought about largely by the
construction sector.4
This remarkable decade for Spain relied in large part to the housing
boom it experienced, but after the crash of the housing market, Spain’s economy suffered
a recession. Spain has experienced high unemployment in the past, but during its Golden
Decade unemployment dipped below 10%. During this period, a heavy influx of
immigrants contributed to Spain’s economic boom. Approximately 12.2% of Spain’s
population in 2010 were foreigners and between 2000 and 2008 the percentage of
employed immigrants increased from 1% to 14.8%.5
The 2.6% decrease within a two-
year span is important as it shows the fiscal incentives before and after the crisis.
Additionally, Spain’s trade deficit increased during this period, meaning that Spain was
importing more goods into its market, allowing for jobs to be created elsewhere instead
of domestically. This increase in the trade deficit was at a record high in 2007, thus
3 Julia Sinitsky, “Unemployment in Spain After the Financial Crisis,” Boston University Undergraduate
Economics Association, October 15, 2013, accessed February 10, 2016, http://buuea.com/unemployment-
in-spain-after-the-financial-crisis/.
4 Andrea Éltetö, “The Economic Crisis and its Management in Spain,” Eastern Journal of European
Studies, 2 (2011): 41, accessed February 12, 2016.
5 Éltetö, “The Economic Crisis and its Management in Spain,” 43-45.
6. 6
contributing to Spain’s economic and employment downfall. Spain’s lack of investment
in domestic jobs intensified the issues brought about by the crisis.
Spain’s high unemployment rate is an extensive issue. Even before the financial
crisis of ’08, unemployment amongst youth was still unstable. The country failed to
invest in education and innovation when it was experiencing its economic boom, which
has played a key role in the high unemployment rate now facing this country. Its high
percentage of unemployed is the most critical sign signaling Spain’s weak economy and
it also signals continued stagnation within other EU economies. If Spain cannot correct
its structural difficulties then the rest of the Eurozone will bear the consequences as well.
Since Spain is a part of the Eurozone, all countries that are part of the Eurozone feel the
repercussions of its economic woes and high unemployment rates.
Relevance to the European Union and Europe Collectively
Spain’s economy and high unemployment are of significant relevance to the EU
and Europe as a whole. As the fourth largest economy in the Eurozone, behind Germany,
France, and Italy, Spain has seen significant economic growth in the past couple of years
and is set to see a GDP growth of 2.8% this year according to the European
Commission’s Economic and Financial Affairs Report.6
Spain’s economy, however, is
still fragile and thus incredibly vulnerable. Despite positive forecasts for the Spanish
economy, the Commission predicts negative risks to the economy, which develop from
the uncertainty in the formation of the new government (The European Commission,
2016). The EU cannot depend on a Spanish economic turnaround to sustain and
6 The European Commission, “Economies of the Member States,” Institutional Papers 202016, February
4, 2016, accessed on March 28, 2016.
7. 7
categorically benefit the Eurozone. In general, distressed economies within the European
Union lead to an overall increase in borrowing costs, as the EU has to bail out its
economies. These bailouts from countries like Germany come with strings attached, such
as strict austerity measures, that ailing countries resist. As Spain, and other peripheral
countries, have accumulated massive debts and deficits, it has threatened the Eurozone’s
effectiveness and productivity This threat highlights the European Union’s economic
interdependence and calls into question the sustainability of the monetary union.7
Under
the Maastricht Treaty, states that are a part of the Eurozone must have their economies in
order and be fiscally compliant. Negligence regarding Eurozone applications had led to
harsh effects for the EU and the IMF.
In 2012, Spain requested a bailout; EU leaders agreed to allocate $123 billion of
Eurozone funds to recapitalize Spain’s struggling banks. Despite EU assistance, Spain
followed Ireland and exited its bailout program, allowing Portugal to do the same.
Spain’s economy is set to grow, however, unemployment remains high, high debt persists
and there is still a rigid labor market, all weighing down Spanish banks.8
These bad assets
weighing down the banking system compromises the work the EU has done to assist
Spain and brings about negative effects and uncertainty to the EU as a whole.
Not only is Spanish unemployment an issue for the European Union, but also
unemployment is collectively a problem for the EU, for it leads to an array of challenges.
The high percentage of youth unemployment in the EU has led to a sharp rise in
Euroscepticism and has led to young voters diverging from the mainstream liberal leaders
and instead supporting much more radical political parties based upon Nationalist
7 Christopher Alessi and James McBride, “The Eurozone in Crisis,” The Council on Foreign Relations,
February 11. 2015, accessed on March 28, 2016 from http://www.cfr.org/eu/eurozone-crisis/p22055
8 Alessi and McBride, “The Eurozone in Crisis.”
8. 8
sentiments, sentiments that once tore Europe apart. In May of 2014, millennial voters
were a key source in the outcome of Parliamentary elections. For instance the French
Nationalist front, Marine Le Pen, won 25% of the votes of 18 to 24 year olds.
Additionally, a majority of Greece and Germany’s millennial voted in favor of far-right
Eurosceptic parties.9
The European youth have become cynical of the EU because of all
the issues it faces and the lack of transparency within the system. It is important to
recognize, however, that not all countries’ youth are supportive of far-right Nationalist
parties. Political dissatisfaction varies by region; in Spain and Greece youth have
benefitted from the growth and popularity of left wing parties such as Podemos and
Syriza.
Another challenge brought about the high unemployment is that of economic
integration. The EU’s youth has lost its keenness for economic integration, a principal for
which the Union is based upon. The approval ratings in countries with the highest youth
unemployment rates like Spain and Italy, which are 30% and 12% respectively, have
sharply declined over the past few years.10
Adding to the field of challenges is wide
emigration within and out of Europe. Despite the waning working age population and rise
of educational attainment, there are simply just not enough jobs to go around in Europe.
The high unemployment has brought about large waves of emigration, as skilled and
qualified people search elsewhere for opportunities not available to them in their home
countries. According to the United Nations Population Division, 18 out of the 40
European countries experienced negative net migration rates from 2010 to 2015.11
As
9 Neil Howe, “A Rising Generation of Eurosceptics,” Forbes, (October 30, 2015).
10 Bruce Stokes, “Faith in European Project Reviving,” Pew Research Center, (June 2, 2015).
11 The United Nations, “Data Query: World Population Prospects,” Department of Economic and Social
Affairs, (2015).
9. 9
Millennials struggle to find jobs, the added issue of immigration and the ongoing refugee
crisis does not help. Large numbers of Syrians and other Middle Eastern refugees are
seeking Europe for refuge, only adding to the youth’s frustration and struggle to find
jobs. Millennials are the next generation of the EU and it is their views that will shape the
future of the EU and will influence the outcome of the European Project.
The Challenge and Meaning for Spain
The topic of the economy is meaningful and challenging for the European Union
and Spain because a strong economic backbone is crucial for the EU and the Eurozone,
something of which Spain is a part. When it comes to its member states’ economies, the
EU has set the precedent that it will bail out these economies, thus the EU needs Spain to
bounce back so that it does not need to continue to monetarily assist its economy. As the
fourth largest economy in the Eurozone, the EU needs Spain to have a strong, functioning
economy with high employment. The financial crisis and subsequent consequences that
have followed have been detrimental for Spain. While its economy and GDP are
projected to grow, there are still structural issues that continue to persist in Spain. As
Spain enters into this fiscal year’s second quarter, high debt, emigration, lower consumer
consumption and income disparity are all persisting challenges.12
There are many
problems within the Spanish education system as well as a lack of investment in
innovation, both of which have abetted the high unemployment in Spain, particularly that
of its youth sector. Spain is now challenged with generating jobs for its citizens,
especially its youth; many of who are college educated and skilled.
12 Melissa Parietti, “5 Economic Challenges Spain Faces in 2016,” Investopedia, March 15, 2016, accessed
on March 28, 2016, http://www.investopedia.com/articles/investing/012416/5-economic-challenges-spain-
faces-2016.asp
10. 10
Overall Purpose
The purpose of analyzing and evaluating Spain’s economy and high
unemployment is to look at the conversation surrounding the policies in place and the
policies that could help better alleviate Spain of its troubles. High youth unemployment is
the biggest concern for Spain because it contributes to political and social unrest. There is
a loss to future productivity and overall earnings and a very real chance that cyclical
unemployment will become structural. Educated youth who are actively looking for jobs
and cannot find them will not only hinder the Spanish economy but also Spanish society
in that it could potentially lead to negative effects on health, happiness and job
satisfaction.13
If serious structural reforms are not implemented, Spain could see its
current youth becoming a “lost generation.” The purpose of this report is to contribute to
the conversation and showcase why this issue is of concern for not only Spain, but also
the European Union and Europe as a whole.
Spain’s Attempts to Tackle Unemployment
The economic crisis hit Spain hard and unlike many OECD countries, the impact
has lasted much longer in Spain. The construction sector collapsed, the government
deficit grew exponentially larger and unemployment saw unprecedented levels, levels
Spain is still trying to reduce. Despite the drastic impact the crisis has had on Spain, it has
allowed for a window of opportunity for Spain to reform and restructure it economy and
its labor markets. While the Spanish economy is strengthening, and unemployment rates
are slowly improving, it is not happening fast enough. A variety of measures have been
13 Stefano Scarpetta, Anne Sonnet and Thomas Manfredi. “Rising Youth Unemployment During The
Crisis: How to Prevent Negative Long-term Consequences on a Generation?” OECD Publishing (2010).
Accessed February 24, 2016. doi: 10.1787/1815199x.
11. 11
taken in order to curtail unemployment, especially amongst the youth sector. In 2012, a
labor market reform was implemented but in order to fully and adequately address the
unemployment challenges, further tools and policies are needed. In 2013 Prime Minister
Mariano Rajoy revealed a plan of 100 individual measures the country would take,
among them was spurring spending in order to curb the extensive youth unemployment.
This plan allocated 3.5 billions euros over four years to stop the rising rates of
unemployed millennials. Now, in 2016, these effects are being slightly felt but further
reform is being instituted amongst the labor market, the education sector and work is
being done to create an efficient regulatory framework to reinforce business creation and
encourage the innovative capacity of the economy.14
Obstacles and Limitations to Curtailing Unemployment
Spain’s high youth unemployment has given rise to radical politics. With such
instability in the economy and labor market, the youth have become distrusting of the
traditional two party political system in Spain, thus leading to the creation of radical
leftist parties, such as the left-wing populist, Podemos party in 2014. Podemos is centered
on finding justice and solutions for Spain’s issues of inequality, unemployment and
economic disorder. After its establishment in 2014, the party garnered 100,000 members,
a number that has now risen to 389,000. This large number in such a short amount of
time could be attributed to Podemos’ goal of renegotiating the austerity measures put in
place as well as its goal of limiting the Treaty of Lisbon.15
In times of malaise and
corruption, citizens, especially the youth, look for ways to revolutionize the status quo in
14 Angel Gurría, “Spain After the Crisis: A New Growth Model,” OECD, (2010).
15 Omar G. Encarnación, “ Can the Far-Left Sweep Spain?,” Foreign Affairs, February 6, 2015, accessed
February 6, 2016.
12. 12
politics. As Podemos continues to grow in popularity and youth unemployment stays
stagnant, there is a very real chance of further intense political backlash.
In order to strengthen its economy, its politics, and its overall support and morale, the
European Union and in particular, Spain, needs to get its unemployed, especially its
youth, back to work. Spain needs to create more jobs domestically, instead of overseas,
and to innovate so to make its labor force more mobile. The country needs to encourage
its workers to get back to work and to be more competitive. In addition to Spain, many
European countries support its unemployed for more than a year, an issue that needs to be
addressed. The EU needs to initiate labor market measures, which will result in
stimulated demand and sharpened skills.
As a result of the qualified and educated youth being unable to find jobs in Spain,
Spain has seen a notable amount of youth emigration into other countries where these
opportunities may be more readily and aptly afforded to them. According to Spain’s
statistics institute, before the financial crisis in ’08, there were 1.4 million Spaniards
living abroad, in 2016 that number is now 2.3 million. This Spanish ‘brain drain’ has
spread through Europe and the Americas with many Spaniards living in Germany,
Venezuela, Argentina and the United Kingdom, which has the sixth largest contingent of
Spanish expats.16
A Fractured Spain
For a period of time the autonomous region of Catalonia, in Spain’s Northern
geographic region, has wanted to become its own sovereign territory. As a highly
16 “Spanish Brain Drain Spreads Through Europe and America,” Algarve Daily News, (March 18, 2016).
Accessed April 27, 2016 from http://algarvedailynews.com/news/8303-spanish-brain-drain-spreads-
through-europe-and-america.
13. 13
economically prosperous region, Spain has been reluctant to comply with Catalonia’s
demands. With the economic crisis and surging unemployment, Catalonia’s resistance to
be apart of Spain has only increased. The region makes up 19% of Spain’s GDP, is taxed
heavily yet rarely sees anything given back from Madrid in return. Catalonia feels it is
milked by the Spanish government to help more ailing parts of Spain, such as Andalucía;
however, its own services are underfunded. After pro-independence parties won the
elections in 2015, it is uncertain whether or not Spain will be able to keep Catalonia as a
part of the country, a move that is in Spain’s best interest. With uncertainty and disarray
amongst Spanish politics, an independent Catalonia only seems more likely.
Looking Ahead for Spain: Conclusions and Recommendations
Since the economic crisis of 2008, Spain has seen significant recovery. The
economic crisis highlighted many fundamental problems in Spain’s housing bubble, the
financial sector and its unsustainably high GDP growth. The crisis left Spain with
devastating economic downturns, an incredibly high unemployment rate and a number of
bankruptcies for major companies. As one of the hardest hit EU countries, Spain still has
a long way to go. Its economy and GDP are growing once again and while labor market
reforms have been effective and are improving, its unemployment is not growing fast
enough. Youth unemployment is one of the greatest challenges still facing Spain. The
country’s economy is still facing macroeconomic imbalances. While there have been
improvement in the rebalancing of Spain’s current account there are still risks linked to
the high levels of private and public sector indebtedness. In addition, the exceedingly
negative net international investment position needs careful attention in a framework of
14. 14
very high unemployment. Spain needs to implement further action in order to reduce the
risk of unfavorable effects on the Spanish economy and of adverse spillovers to the
economic and monetary union.17
In addition to the reforms and policy proposals brought about by Spain, The
European Commission has made four recommendations to ensure that Spain is on target
come 2020. To help Spain improve its economic performance it must adhere to
improving the following areas: public finances and health; financial sector; labor market;
small and medium enterprises and services.18
Spain is the EU’s fourth largest economy
and safeguarding its progress is vital to the Eurozone. Spain needs to take more measures
to tackle its unemployment rate, particularly that of its youth sector. In the interest of
policies, Spain the government needs to target specific groups among the youth in order
prioritize and customize solutions and direct available resources to the specific needs of
groups based on their areas of vulnerability. A second policy recommendation for Spain
would be planning for the short term and long term in order to maximize potential. In the
short term, it is crucial to adopt impact measures that focus on mitigating the immediate
consequences for the most vulnerable sectors of the population. These vulnerable sectors
would be those with low levels of education and job training. Prioritizing this group is
vital to the improvement of overall unemployment.
Tackling youth unemployment is not something Spain can do on its own. The
European Union, as a whole, needs to provide assistance to Spain and address it across
the entire EU. As of 2015, there were still 7.5 million young Europeans who were
without jobs, without school and without training. One measure the Commission is taking
17 “Europe 2020 in Spain,” The European Commission, (2015).
18 The European Commission, (2015).
15. 15
is to promote job mobility, to encourage youth to travel throughout the EU to countries
where there may be more jobs or training opportunities available. Of course, this is only a
short -term solution as their home countries should be able to offer these same
opportunities in the long run. In 2013, all EU member states signed “The Youth
Guarantee,” a promise to invest in youth. The Guarantee entails youth to be enabled to
find jobs suited to their level of education, skill and experience or the opportunity to
acquire the necessary education, skills or training in order to get a job or apprenticeship.
This Guarantee provides grounds for structural reform measures in both the long and
short term. It seeks to establish structures, measures and processes to be able to offer the
unemployed youth a way forward, a way to become integrated within the economy and
labor market and to enhance access to a job for not only Spain’s youth but also to
enhance the access to the labor market for all of the EU’s youth.19
As The Youth
Guarantee is a new adoption by the EU countries, it is still playing out and its effects are
yet to be significantly felt.
Getting the youth working and tackling overall unemployment is not an easy task
and there is no one simple solution. As this paper has addressed, unemployment is an
issue for Spain and other parts of the EU. The Spanish economy and the unemployment
rate have considerable consequences for the entire Union and puts a significant financial
burden on the Eurozone, thus it is an issue that needs collective assistance in addressing.
The high rates of youth unemployment have had dire implications for the EU and for
Spain. There has been a rise in radical politics across the EU, an increased level of
Eurosceptisim and Spain has seen a greater push by Catalonia for independence. Despite
19 “Addressing Youth Unemployment in the EU,” The European Commission, (2015).
16. 16
the Spanish economy improving and unemployment slowly decreasing, the rate at which
it is doing so is not rapid enough. Through reform and strict structural measures, there is
hope that Spain can hasten its improvement of the dire situation in which it finds itself,
and give hope to its youngest, brightest and most promising members of its labor force.
17. 17
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