The country's newly elected conservative government is pursuing austerity with zeal.
Apr 18, 2012
(AP Photo/Daniel Ochoa de Olza)
It is a well-known maxim that to keep repeating the same action and expect a different result is a symptom of madness. It is hard to find a different way to account for the persistence of Eurozone leaders in inflicting punishing austerity on countries belonging to the common currency, a strategy that has proved both fiscally ineffective and socially destructive.
In recent days, the focus of the crisis has returned to Spain, and for good reason. The country suffers from the highest unemployment rate in Europe: 24 percent, and it’s more than 50 percent among those 15 to 24. Despite this catastrophic state of affairs, the relatively new, conservative Spanish government—elected last November with 46 percent of the vote on a platform of austerity and structural reform—recently unveiled a budget proposal that, in the words of Budget Minister Cristobal Montoro, is the strictest since the death of Franco in 1975. The total fiscal adjustment for 2012 is a massive 27 billion euros. The goal is to bring Spain’s budget deficit down from 8.5 percent of gross domestic product (GDP) to 5.3 percent.