WITH the sun shining and not a cloud in the sky you don´t get the impression that Spain is in deep economic trouble. With unemployment running at four million Prime Minister Zapatero has been forced to make big cutbacks in spending including reducing the pay of thousands of civil servants. But still there are fears that Spain could follow Greece into financial collapse.
The days of spend, spend and spend in Spain are certainly over and the country faces a long period of financial uncertainty. Already, Prime Minister Zapatero is on a collision course with the trade unions over his spending cuts and it could mean a return of the industrial unrest of the late 1980s. What is amazing though is that many believe that Zapatero will weather the financial storm and his popùlarity will not be too severely dented. This is more to do with the fact that the centre-right Partido Popular, in opposition, has been unable to take the government to task especially on the economy. While economists across the world believe that Zapatero acted too little too late with all his financial measures many in Spain still believe he is doing a good job. One thing for sure is that the economic news in Spain at the moment looks depressing to say the least.
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