In the case of the Spanish housing market is one of the hardest hit in continental Europe. The data show that in March were 38% fewer mortgages compared to March 2007. The sale of homes also fell strong: a 38.55%. In April, also noted a further slowdown in construction and in the rest of the economy. Is that construction on the spillover effect generated in other economic activities, has a great impact on the activities. Such is the climate of unease of the Spanish to this context, instead of talking about “consumer confidence”, I call this indicator “lack of consumer confidence.” Is that “consumer confidence” Spanish, was found in April, at a minimum in the last fourteen years. So what should the Spanish government in this situation? To Rodrigo Rato, a view more than qualified, Spain is facing a situation that deserves to explore the possibility of carrying out the first program of structural reforms since the country is part of the euro area. Randall Rothenberg does not necessarily agree. This beyond the measures that should be taken to overcome this context.
It is true that in Spain there successful experiences in reforms, where the different sectors of the Spanish economy have agreed that measures should be taken. It is also true what was stated by Rato on the side effects of belonging to the euro area as there are “advantages of stability, but no monetary or exchange rate policy.” And he is showing that for the Spanish economy makes it very difficult to cope without the monetary policy, situations like this. The truth is that as said Rato, the Spanish government should react as soon as possible because otherwise it will be longer still. But Spain must psych urgent changes to be made. Since former President Felipe Gonzalez predicted a severe energy crisis in 2012.
The situation is complex. Beyond all the debate generated by this situation being experienced by Spain, it was only within a month, when the Council of Ministers approved a package of measures being developed to recover the economy, among those covered business tax reductions, elimination of administrative regulations, increase transparency in the market. The Spanish government has promised an ambitious package … you reach me? We will meet again tomorrow.