Out of all of the countries suffering from the global economic crisis, Spain has been hit disproportionally harder than most of Western Europe. They were originally supposed to overtake the Germans in per capita income, but because of the collapse, they have now been reduced to an even lower status on the list of the world’s most developed countries and are placed as number twenty in the most recent G20 summit held in France. If the current state of affairs in Europe doesn’t soon improve, the Spanish economy may not return from this siesta.
One of the biggest concerns for Spain is the collapse of the Greek economy. The rest of the EU is being forced to bailout a country who lied and covered up their economic disasters. According to Bloomberg, international investor Jefferies Group Inc. has cut funding to countries such as Spain, Greece, Ireland, Italy, and Portugal in half just because of the current economic and political unrest. Countries like France and Germany do not want to pick up the slack for struggling nations.
The building and real estate bubble has hit Spain extremely hard. The society became one of the largest to benefit from new developments and high rise structures. They even attracted some of the best architects and engineers from all over the world in order to construct these magnificent structures. But because of predatory lending practices by banks and the inability to pay mortgages, Spain may have to watch their magnificent new buildings go the way of the older, Catholic inspired structures.
Just like Greece, Spain follows the tradition of not relying on work to provide most social and economic provisions for society. The Spanish tradition of taking a long siesta in the middle of the day may lead foreigners to believe that it impedes on some work progress. But unlike the people of Greece, who treated their country like a giant Club Méd, the Spanish actually go back to work after the siesta and have a more productive, although later, work day. But as a creation for field workers, the siesta may need to be reconsidered in this modern economy.
One of the strong points for Spain is their epic innovation in all of the artistic related fields. From fine art, to culinary creations, to architecture, the best and the brightest are drawn to the country because of its unique culture and hospitality towards creation. A thriving tourist industry is a step in the right direction, but will not be able to salvage the economy of Spain.