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The Pain In Spain

Matthew O’Brien looks at Spanish unemployment charts, considers the structural problems with the Spanish economy, and freaks out. Excerpt: I wasn’t exaggerating when I said this is one of the most terrifying things I have ever seen. Spain needs shock therapy for its labor markets, but that’s an impossible political sell when more than a […]

Matthew O’Brien looks at Spanish unemployment charts, considers the structural problems with the Spanish economy, and freaks out. Excerpt:

I wasn’t exaggerating when I said this is one of the most terrifying things I have ever seen. Spain needs shock therapy for its labor markets, but that’s an impossible political sell when more than a quarter of the population is unemployed. In an ideal world, Spain would pair major reforms with major stimulus; in the real world, it will drag its feet on reforms, try to cut its deficit, and fall deeper into depression.

Let me leave you with this depressing question: Assuming everything goes perfectly, how long will it be till Spanish unemployment gets below 20 percent?

Don’t answer that.

This can’t go on forever. What’s coming next for Spain, and the Eurozone? Thoughts? Any readers in Spain or in the Eurozone care to tell us the view from your perspective?

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