In last week's poll we asked:
Will the EU need to bail out Spain?
243 responses were received and the verdict is:
The following comments were submitted by the respondents:
Under normal circumstances: no. But if hedge funds continue to speculate (some people earn loads of money by spreading rumours alone), it becomes a self fulfilling prophecy.
Anything that helps the exchange rate will do me - currently @ 1.178 euros to the pound and going up -Yippee!
Not if the present Government is sensible enough to reduce IVA for the Property Market for a 12 month period to say 3% instead of increasing it to 8%. This may give the Market the Impetus it needs, similar to what the Scrappage Scheme has done for the Car Market. Otherwise, unless the Euro weakens against the GBP thus encouraging the return of the Brits to the Spanish Property Market, they will have to find another way to strengthen the Spanish economy. Duncan
The president Zapatero has sold out Spain and has wrecked the economy. Since the socialists won the lections in 2004 his goverment has managed to loose Spain its international credibility, brought in two may tax laws and reforms that has seriously affected the second largets if not the largest money earner, Construction and the Real estate industry. This is home grown and seriously out plays the global downturn. They have managed to spend the 45.000 Million euros that was in the kitty since 2004 and now have a 20% of the population unemployed with families finding it hard to get to the end of the month. Companies going broke on a daily bases because thay can't get finance from the banks who are supposedly the administrators of the goverment money to help out these failing companies. This government is incapable of finding a solution and I see that we could be going the same route as the Greeks if something drastic is not done now immediately.
It's not if, but when and how much. We are seeing a Greek tragedy unfold, but the Spanish comedy is also playing out. See what comes from the meeting today between Zapatero and Rajoy- then watch out for falling bricks.
As the Greek & Spanish economies are very similar, it seems inevitable that Spain will need some kind of bailout !!!
YES,HOWEVER THEIR IS NOT ENOUGH MONEY IN THE EU TO BAIL OUT THE PIIGS.
GREECE MUST NOT BE BAILED OUT IF YOU WANT THE EURO TO SURVIVE.
NO COMMENT
The Irish Government began 18 months ago implementing painful tax increaes and reduced public servant salaries which are having the desired effect resulting in Ireland no
longer 'at risk'. In fact GDP is expected to grow nearly 1% in 2010 and 3% in 2011. If Spain requires a 'bail out' - which I doubt - and because of the size of it's economy it would precipitate a very serious crises for the Euro. The next economy - and it's not even in the Euro - to come under the microscope of the market vultures is without doubt the British one. Wait for the General Election to settle and the British public will wake up very soon to the reality of how bad their Public finances are; Greece is in the 'halfpenny' place by comparison! Sterling to drop several percentage points against the Euro during the next few months.
Spain has a long history of good Government always paying its way, good money management,
Spain became greedy with prices and taxes going up and up.The euro went up against the pound making things worse for the British.The government upset a lot of people with it's corruption and forced demolition of property.All this just as the credit crunch came along. Spain needs tourism but failed to nurture it and now will have to pay the price with unemployment and lack of revenue. As the U.K starts with a new government it will be making financial cuts so less people will be able to go to Spain for a holiday. If Spain does not start to woo the tourists back they will go to other countries like Turkey where it is cheaper and service is better and Spain will be well and truely in the brown stuff and crying out for financial help.
I will say "No" because if they do.... talk about the domino effect! You will have Euro Zone country after country trying to jump on the band wagon and follow suit, and we would end up with the fall of the Euro as a single currency.
Kind of like "Damned if they do and damned if they don't!"
Spain certainly not. That's just a hoax. Anyone with some knowledge of the figures knows that there is problem at all.
The IMF stated so as well an April 24th that there is no fundamental problem at all with Spain. It's a hoax started by journalist who can't read financial figures. Spain has one of the most solid banking system in the world *says the IMF,
I have no knowledge of Ireland or Portugal, but the poll as posted is silly>
a People don't know and believe everything. It's not fit for a poll
b It just stimulates the hoax and the superior feelings the Brits seem to have if they are talking about some countries like the ones mentioned.
If Spain thinks that they will need help from the EU, they have all the rights being member of the EU. At the other hand, I believe that the Spain is doing all that they can to avoid this. Let's hope for the best.
There won't be any money left after bailing out Greece and Portugal.
Portugal next , thenSpain
No bailouts for anyone!!! You make your bed and you sleep in that bed !......Spain should get out of the EU and stand on it's own feet ! The EU and The UN are worthless........G.
If Zapatero doesn´t wake up...... Spain is next.
Yes, EXPAT experience, the Spanish hide the truth, and have layers of public servents, not used to efficiancy, so hardly surprising they do not know they are in trouble.
I voted yes.
You only have to look around to see that an economic turnaround is a long way off.
Spain will not be able to avoid the disastrous conequences of over borrowing and fuelling a construction bubble which has now burst. It would be better off outside the Euro and withdrawal would be the first step to reviving the fortunes of this great country.
When the EU grants stop Spain will run out of money. Although they have invested some of the grants usefully in road infrastructure they have not invested in industry. Construction and Tourism will not support the country. Inflation is out of control and it is cheaper to live in the UK for food, housing, clothing and electricals. There is little or no competition between businesses. Wait for the UK to follow with public sector pension deficits of 900 billion let alone the other small (in comparison) black hole.
I hope the next UK Prime Minister will offer the Sterling to the stronger EU countries, so they can opt out of what seems to become an ever weakening Euro currency. It also helps avoid Greece to have to step out the Euro.
Without an industry it will be very hard for spain to cope , thats why Spain needs expats with skills in order to keep the ecomony going.
Like Britain under New Labour and Greece under their 'socialist' regime, Spain have squandered the revenue from the boom years.
Spain is fortunate in that the regions have ensured that much of the EU's dictat and orders are ignored. We in the UK have suffered intense oppression from them and they rule our every move. Can't even do simple DIY in our own homes without informing them of what we are doing. I love Europe as individual, different, independant nations but I hate the EU. The Euro has caused the problems in Greece as the Greeks cannot devalue to save their economy. They should leave the Euro and get the Drachma back. The tourists will love that.
let them get back to the peseta
the banks will be ordered to sell off the properties on their re possesed and handed back books for half the value of the mortgage owed to them, this will partically capitalise the banks
and will give breathing space to the government.
But it would be better off out of the EC, only then, where would Europe go on holidays that easily....? Ha!
Yes... But lets hope it doesn't come to that.
Whether Spain likes it or not foreign owners especially the British are economically important for them and for Spain to get through the current economic crisis they will have to ensure stability in the housing market.
But there won't be enough money in the kitty after Greece and Portugal so sky high taxes and retrenchment
BUT WE HOPE WE ARE WRONG
But we hope it won't come to that.
Yes - along with God knows how many others.
it will teach the smart arsed mayors they are not in control,that they still need others.to keep pumping money into the system.but as they know better than the expats,and try to stuff them at every turn.now its our turn to see them squirm.
still it won,t affect them as they haved stashed there cash.it only affects the average joe.
Because the politicians are lying. But then what´s new?
"Its The Property bubble Stupid."
I think Spain is a large country which has one great natural resource which of cource sun shine and tourisim. It will recover.
It may not be as wide ranging as the Greek situation, but Portugal and Spain are next in line. Unfortunately, there is only so much the existing financial forces can do...but Spain does need help in developing new industries, jobs, jobs, jobs. Those empty buildings must be turned into something constructive. mfk
Contagion will not spread!
Spain can and should fix the problems by itself. But for this purpose the government should take serious and unpopular steps.
External money could only delay the crash and finally cause much more problems.
With Spain & Portugals credit rating now downgraded it won't be long before the Euro nosedives.
And if we look at what's happening in Greece where the man in the street is suffering badly, due to the usual corrupt Politicians and Rich Fat Cats just getting richer, it's no different here or anywhere in the world.
And no matter what the media say's the recession is not over, this is a wake up call.
all very worrying as we have just invsted money in our Spanish bank!
Will they have to bail out Britain too with these horrific levels of debt Labour have built up?
I cant even see that there is any doubting this one. With the downgrading of Greek Govt debt and the snowball starting to roll towards other areas of the Eurozone I think its inevitable. I just wonder if the EU/IMF have a big enough wallet.
Spain had a fool proof economy with money coming in one way, stopped by greed and corruption in the local mafia powerhouses . pensioners ,holiday homes those that do not need jobs but supply the economy.see BHtheTRUTH on youtube for just one case.
Maybe some short term loans but not a full greek style bailout.
I think it will def. happen The property market is on its knees and the holiday market is not far off!
You only have to look at all the unfinished properties in Spain to see that nothing new is selling. Spain has frightened off its cash cow with the amount of corruption that has taken place. I can't see anyone wanting to invest there again when there are better options to be had.
Many Town Halls are in financial trouble and over budget.There appears to be no remedial action being taken.
I think it is quite possible that Spain will eventually need to be bailed out. Their economy was boosted for the last decade by the building industry and international property sales but with both these now on their knees, what else have they got to fuel their economy? Portugal and Ireland are likely to need assistance before Spain and If it does come to this, then I think we can kiss goodbye to the Euro, as all confidence in the Euro will be gone and the currency will collapse. The problem with the Euro zone is that all the member countries have to conform to a single fiscal policy and cannot make adjustments to suit their own individual economies. So you have strong economies like Germany and weak, bankrupt economies like Greece, Spain, Portugal etc all working under the same financial policy. Worrying times ahead for the Euro zone methinks, glad the UK is outside it.