Ouch. Some of the more delicate economies in Europe are working on their substantial budget problems. Spain in particular has some very serious challenges to address including 20% unemployment. One has to wonder how long the US can push out this issue as well. The Times has an interesting article today on the budget issue as it relates to the US which is definitely worth a read. All along it's been a hard balance between moving to pump money into struggling economies to keep them moving and knowing when to stop. As voters start feeling the pinch of pulling back spending, they're going to start looking more into who is prospering. Again, the bankers at Goldman have to question their flashy numbers and arrogance during times such as this.
Speaking in parliament, PM Jose Luis Rodriguez Zapatero is outlining cuts aimed at bringing down Spain's borrowing levels.
The budget deficit is currently 11% of GDP. On Monday Spain said it planned to cut it by 4.7% by the end of 2011.
Fears Greece's problems would erupt elsewhere has put pressure on the euro.
Spain's unemployment rate exceeds 20% - twice the eurozone average.
