It is not surprising that Spain is back in a recession that I really don’t think that they ever got out of in the first place. It is very important for the Spanish government to stay vigilant and unified in meeting their goals, and for European policymakers to help Spain as long as they stay on that course. The root of Spain’s problem is the Euro currency which doesn’t allow for them to benefit from a depreciating local currency to boost exports. This is why German jawboning is so silly in that if they don’t remain flexible in balancing growth with austerity, than there is no incentive for these peripheral nations to keep the Euro currency whose primary beneficiary is Germany.
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