THE Spanish government are pushing ahead with their claims that the economy is recovering and soon new jobs will be created to reduce the massive rate of unemployment. To be perfectly honest I haven´t met anyone yet in Majorca who claims that the green shoots of recovery are starting to take hold. Ihave never seen so many empty shop fronts in Palma and even outside the capital times appear to be hard. Now, obviously once the summer season gets into full swing businesses will be more upbeat but with 4.5 million unemployed in Spain it is difficult to be optimistic. Also, it must be remembered that those who are in work have seen their wages frozen or even reduced. The Spanish Prime Minister Mariano Rajoy has that his government´s economic policies are working but at the same time he has increased the tax rate for small business people who would help spur the economic recovery. The reason why the economy is growing is because of Spanish exports. The domestic market remains depressed to say the least. Rajoy´s economic policy appears to be wait and see and hope for the best. Granted, he has reduced government spending but he has failed to help the business community especially the smaller businesses who are having a nightmare time trying to survive. Rajoy should reduce the small business tax (autonomo) and encourage as many tourists as possible to come to Spain. Then we may start seeing the green shoots of recover.
Spanish economy
26/02/2014 00:00
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