The Greek Malaise Is Now Touching Spain

Hundreds Of Thousands Of Spaniards Protest New Labor Reforms -- L.A. Times

REPORTING FROM MADRID -- Hundreds of thousands of Spaniards packed town squares nationwide Sunday to protest labor reforms that the new conservative government says are necessary to encourage economic growth. Workers fear the measures will allow companies to fire them more easily, exacerbating what is already Europe's highest unemployment rate.

The largest protests appeared to be in Madrid's Puerta del Sol square, previously the home base of Spain's indignados -- angry youths who staged several months of demonstrations last year over unemployment and perceived government corruption. Tens of thousands also gathered in Barcelona, Valencia and more than 50 other cities and towns.

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More News On The Protests In Spain

Close to One Million Spaniards Protest Labor Overhaul, Pais Says -- Bloomberg
Spaniards demonstrate against labour reforms -- Financial Times
Huge protests against Spanish labour reforms -- ABC News (Australia)
Spanish protest against spending cuts and changes to labour rights -- The Guardian
Huge Spain rallies condemn labour market reforms -- BBC
Unions protest Spanish labor reforms -- CNN
Spain Protests Labor Reforms As Hundreds Of Thousands Take To Streets (PHOTOS) -- Huffington Post

My Comment: After borrowing heavily for years with no control on spending .... Spain is now stuck with an unbelievable 23% unemployment rate , huge debts, and a treasury that is so broke (especially on the municipal level) that no one is now willing to lend them any money. So .... we now have hundreds of thousands of Spaniards protesting the demise of their "social safety net". Sighhh .... sorry .... the sad fact is that a good chunk of Spain's 'social safety net' was backed by foreign lenders, and they are no longer (and unable) to support it.

The key to Spain's long term prosperity is to give the entrepreneur class the environment to grow, and the first thing that needs to be done is to give them the power to lay-off those that they do not need anymore. A common sense idea in my part of the world (i.e. Quebec, Canada) and from my work AND business experience, but one that is clearly not shared by many protesting in Spain today.

My prediction for Spain .... a lot more pain and if the Euro goes bust .... a depression and a high unemployment rate for a generation .... but this is far more preferable to the alternative, which is exactly what Greece is now going through.