Chapter 4: Spain
CESifo Group Munich, Munich, 2011
in: EEAG Report on the European Economy 2011, 127–145
Spain has suffered a lot from the current crisis and is the first large economy that may find itself in need of fiscal rescue. If this happens it may prove quite damaging to the euro. Yet, since the mid-1990s, Spain was a champion of growth and fiscal stability; its unemployment had fallen rapidly to the levels that prevailed in the rest of the European Union. This chapter discusses the reasons why such a virtuous initial situation deteriorated so sharply since the start of the crisis. Was this just bad luck or were the booming years just a mirage?
Included in
EEAG Report on the European Economy 2011
CESifo Group Munich, Munich, 2011