Are Internal or External Factors to Blame for the Sovereign Debt Crisis in Spain? What Are Policy Implications of Your Analysis?

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Are internal or external factors to blame for the sovereign debt crisis in Spain? What are policy implications of your analysis?
From market interest rates to lend it money, the Spanish government has risen to 10 years, far higher than the 6% - far below the level of 7% -8%, prompting Greece, Ireland and Portugal cap hand Brussels bailout. In comparison, the German government paid 1.42% interest rate- which, incidentally, is the lowest borrowing costs in Berlin has ever had. The market say they fear Spain may end up like Greece, and unable to repay the debt, so they put their money on safe German bonds. The fear is common, creating a vicious cycle. If you have more cash to leave the Spain 's banking system might not maintain the
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To completely get rid of this cost overruns, might need deeper recession.

This leads me to a big question: Who will lend Spain money as it is always overspending ,to avoid a economy to collapse? In times of economic prosperity, it is Germany bank loan. However, since last summer has changed. These banks have begun to claim their money back. This is because, since last summer, Spain lenders are starting to doubt. Spaniards had borrowed more than they can repay. Therefore, Spain is getting harder and harder to borrow as the interest rate start to rise as people start to doubt that they could pay them back.
All of this means that, since last summer, Spain not only need to borrow to pay its nasty wasting habits. It also now need to borrow from the others to replace the money which leak out from the country.

Therefore here comes the conclusion that why there are both internal and external factors to be blamed for the crisis in Spain. Spain illustrated the fact that the euro zone 's problems, are the disciplined of government over borrowing and overspending. Even Greece, Portugal and Italy have huge debts but at least the Spanish government tried to control its borrowing that it ran a balanced budget every year until the financial crisis in 2008. Spain had a rapid economic growth before 2008, but it start to off when they start to borrow more. In contrast, Germany, continue to

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