Exiting the Eurozone may be painful for Spain, but it may have little choice.
Spain has been running persistent current account deficits. As writer
Micheal Pettis says: “Its fundamental problem, in other words, has been
the process by which its savings rate has collapsed, its cost structure
forced up, its debt levels soared, and a great deal of investment
directed into projects, mostly real estate, that were not economically
viable.”
See the full article in Economonitor.
Meanwhile, get ready for the Spain banking bailout, which may only buy the country some time.
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