IS Spain really making an effort to cut its enormous budget deficit? You don´t really get that impression. I suspect the southern European states prefer to wait for a bail-out rather than actually try to get their economy into shape. Prime Minister David Cameron has taken enormous political risks to try to bring Britain´s budget deficit under control. Hundreds of thousands of jobs will be lost in the public sector. Even the military has not escaped the cutbacks. But I haven´t see any mention of big job losses in Spain, apart from the 800 the new Balearic government has decided to axe.
The Spanish economy has enormous debt problems but still the government of Rodriguez Zapatero seems to resist taking any radical action. It is the same story in Greece and Italy. The Germans are right to be rather sceptical about more bail-outs. At the end of the day it is their money. Granted that the Germans were the driving force behind the euro but at the same time the German tax-payer can´t be asked to pay everyone´s bills. This is simply not fair. The southern European states need to be told to get their house in order because otherwise no further funding will be made available. This is the only solution. Unless governments stand firm there is a real danger that the euro will disappear.
Greece needs to be ejected and Spain and Italy need to be told to get their economy in order. Otherwise the consequences could be enormous for all involved in Europe.