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Dec3-11, 06:57 AM
P: 98
Quote Quote by Hlafordlaes View Post
The main problem is that labor contracts are negotiated by industrial sector and are currently applied nation-wide, so that a smaller, weaker company, or a fledgling start-up, finds itself required to not only follow salaries, but also work rules, that were designed for the largest and strongest in the industry. Ridiculous.
Which is why I think Spain is not that badly off. Implement some structural change and the economy will be boosted by foreign investment, and the government debt would be relatively low. The deflated property bubble is pretty bad though (but if I am right, this debt is mostly owned by UK banks, so it's not Spain, but the UK which has problems.)