Spain Essay

The federal budget deficit is a much discussed and little understood subject in American politics. The current recession has dramatically decreased tax revenues, driving the United States federal government to increase spending in an attempt to stabilize the economy. As a result the current federal deficit is at over $1.3 trillion dollars. This is approximately $47,754 per U.S. citizen or $137,552 per U. S. taxpayer (U.S. Debt Clock: Real Time, 2012).

America has not seen deficits of this nature since World War II with spending levels reaching 25% of the GDP and deficits reaching 10% of the GDP. And, even when this recession comes to an end, estimates show that annual deficits will continue to surpass

This article, written by Steven Hill, explains Spain’s economic past and how it has escalated to the point of becoming a financial crisis. Hill begins the paper with describing how our world views Spain- as a model for social democracy and the ideal European Union. When Spain’s economy crashed in 2008, it was anything but perfect. In 2008, Spain was suffering from an era of depression as levels of unemployment and debt were rising. Hill describes Spain’s economy to be heavily dependent on the real estate and construction sector after Franco’s death in 1975. In 2007, levels of private home ownership topped off at 87 percent, one of the highest rates in the world. The global economic collapse of 2008, the most destructive since the Great Depression

The fascinating and beautiful country of Spain is one of the largest countries in Europe. The history that Spain has had has left great stories to tell and remarkable landmarks to visit. Spain is located in the south west corner of Europe, with its neighboring countries, Portugal and France. It has a population of forty million plus people, but almost one-third of the nation’s population is foreigners that reside in its territory. One of the most important facts about Spain is that its economy is one of the largest in the world. Spain is currently in a recession, with low employment rates and poverty.

By the end of 2008, the European Union began experiencing rippling effects of the United States financial crisis. Several member countries, most notably on the southern end of the continent, faced high levels of debt and unemployment. Portugal, Iceland, Ireland, Greece, and Spain, derogatively referred to as “PIIGS,” required extensive economic support from the EU in order to repay government debts and bail-out private banks. Disbursal of aid in 2010 proved successful in promoting economic recovery in some countries; however, the vast majority observed only slight economic improvement which led to doubts regarding the effectiveness of the harsh austerity measures implemented. Ireland has most clearly benefited from the financial support of the European Union as the country’s unemployment rate has dropped below ten percent and is expected to witness 4.5% GDP growth in 2016. Portugal, on the other hand, shows little fiscal improvement as evident in an unemployment rate of 13% and an expected GDP growth of only 1.6% in 2016. Although both countries faced tough financial crises in 2010, Ireland has notably outperformed Portugal in resolving the situation. The weak economy in Portugal, as well as continued fiscal hardship in the remaining “PIGS” countries, threaten the preservation of the European Union as financial inequality between the members persists.

Spain also know as kingdom of spain is a soverign state, and is a part of the rest of the European countries. Spain is designated in the southwestern Europe on the Iberia peninsula, and also boarders the mederterranina sea. Spains capital is Madrid. Spain has had its ups and downs throught out their time period , but one thing you will notice is it always seems to flourish n the end. Does spains background really make it what it is today? Spain went through so many trial times that it might seem as if they would never succeed, but low and behold they did persevere. Does spains global issues really make a difference in its success? There are so many aspects of spain, but only the background, government, and success of spain matter. So, where does spain stand as of today? We will explore, and express all of these subject in spain just to find the conclusion and figure out spains postion in the world.

The European sovereign debt crisis, which made it difficult or impossible for some countries in the euro area to repay or re-finance their government debt without the assistance of third parties (Haidar, Jamal Ibrahim, 2012), had already badly hurt the economies in “PIIGS”, Portugal, Ireland, Italy, Greece and Spain. This financial contagion continues to spread throughout the euro area, and becomes a dangerous threat not only to European economy, but also to global economy.

The global financial crisis has caused a massive deterioration in public finances in the euro area. The 2009 recession severely curtailed public revenues and weighed heavily on the welfare state. In addition, states have boarded on bank bailouts and costly stimulus packages. In 2010, no country belonging to the euro area was able to comply with the Stability and Growth Pact (SGP). Public debt in the euro area increased from 65% to 85% of GDP between 2007 and 2010.

Public debt: 62,8% of GDP over a trillion since beginning of the year. Balance of trade is negative.

The 2008–2010 Spanish financial crisis is part of the world economic crisis of 2008. In Spain, the crisis was generated by long term loans (commonly issued for 40 years), the building market crash which included the bankruptcy of major companies, and a particularly severe increase in unemployment, which rose to 13.9% in February 2009.

Europe's debt crisis is a continuation of the global financial crisis and also the result of how Europe attempted to solve the global financial crisis that brought an end to a decade of prosperity and unrestricted debt. European attempts at defending itself against a deep recession, has now created a new crisis of unsustainable and un-serviceable sovereign debt. In early 2010 fears of a sovereign debt crisis, the 2010 Euro Crisis developed concerning some European states including European Union members Portugal, Ireland, Italy, Greece,  Spain,(affectionately known as the PIIGS) and Belgium. This led to a crisis of confidence as well as the widening of bond yield spreads and risk insurance on credit default swaps between

Recovery in the Spanish economy began in the second half of 2013, continuing into the opening months of 2014. There was a moderate increase in quarter-on-quarter GDP and employment rate. Both external and domestic factors helped in reviving the economy. The economic policy decisions adopted by the euro area governments, progress in euro area governance and the ECB’s expansionary monetary policy have contributed to relaxing financial tensions, although they still remain high.

Currently the PIIGS (Portugal, Ireland, Italy, Greece, and Spain), whose GDP ratios are all well over 100%, are in danger of sinking the ship from the amount of debts they cannot pay (Cannon). The projected debt for Greece alone is 300 percent of GDP by 2060 according to IMF economists (Thomas). There have been riots, especially in Greece, which has fallen into yet another

In Figure 1, the 5-YR CDS shows high bp starting from late-2009 to late-2012 and a gradually decreasing trend starting from the late-2013. In Figure 2, it is observed that there is steady and significant increase in the percentage debt of total GDP in Portugal since 2009 compared with others. Besides, there is a slowdown of the increasing trend in the last two years.

Con más de 60 millones de visitantes extranjeros y cerca de 59 mil millones de euros gastados por los turistas, España pegó todas sus marcas en 2013 según el Ministerio del Turismo. Es un 5.6% más que en 2012 por el numero de turistas y un 9.6% más por las rentas (fuente : Egatur, instituto de los estudios turísticos). El jefe del Gobierno, Mariano Rajoy se felicitó de estas cifras “bien sobre la anterior marca de 58.7 millones de turistas establecida en 2007”. Ha destacado las repercusiones de estas cifras sobre la economía española recordando que el sector turístico no solo representa un 10.9%