Spain's Economy Climbing Out of a Sinking Hole?

Spain is doing exceptional considering their fiscal situation; 22.5 billion euros in recent cuts. The fiscal issues are exasperated by the high rate of unemployment (22.8%) but combating that, you have small shows of the fight against austerity (according to government sources, as union representative have consistently claimed 10 times the recorded number by police) and a strong remaining working class picking up the slack. Nevertheless, Deputy Prime Minister Soraya Saenz de Santamaria called the situation "extreme". If Spain had chosen to borrow and spend generously before the European Financial Crisis, there are speculations that they would now be in a better position to have staved off sharp financial cuts and payroll freezes.
Deputy Prime Minister Soraya Saenz de Santamaria 
Will this stall the recovery of the private sector while competently shoring up the public sector accounts? Makes me think of that saying, “...that you have to spend money in order to make money” by Srully Blotnick which I don't agree with personally, especially in response to the American Recovery and Reinvestment Act, but I personally tend to be wrong at an alarming rate. The reason this is important to me at this time, is that I have passed the initial application process for a 6 month unpaid position in Madrid with a large International Marketing and PR firm and I must now decide to continue with the process and risk getting accepted or to pursue full time paid positions in Boston or New York.
People are still willing to invest in Spain though and the economy, which is my primary concern, has the potential to rebound in a big way. Bond Auctions in the last couple of months have seen a rise in popularity and, I'm sure linked, rate, which will raise Spain's borrowing costs but does put much needed money into the country.  Direct Foreign Investment for a controversal possible casino that has the would bring 16 billion euros and up to 260,000 direct and indirect jobs has created a fervor in discussion. Can a Euro-Vegas save or destroy Spain? We have some time before decisions are made and more pressing issues for the immediate future are how the Spanish economy will continue to cope with these current losses and gains.
#NYTimes #ESP

It is the first week in September, 2012, and I am really shocked at just how wrong I was. While the public sector in Spain continues to tighten it's belt and implement austerity measures, the hole within which it has landed itself will not be so easily climbed out of. Kyle Alexander Hentges, the IPB Scholar and World Business Analyst weighed in very strongly against my prediction that Spain would not continue to need bailout funds, and he was right as he tends to be. He did make a strong distinction though, in comparing Spain to Greece and suggested that unlike Spain, Greece should be dropped from the Euro if Germany would allow it to happen. It is a long way from financial stability, but the right moves are being made for a recovery on global terms.

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