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Spain Austerity Problems

Spain’s political leaders will present EU budget directors with its plan to comply with new austerity measures. It needs to hurry the process. Spain’s bond yields have risen to unsustainable levels as capital markets have deserted its paper. Yields on…

By Douglas A. McIntyre
Published April 6, 2012, 5:56am ET · 1 min read

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Spain’s political leaders will present EU budget directors with its plan to comply with new austerity measures. It needs to hurry the process. Spain’s bond yields have risen to unsustainable levels as capital markets have deserted its paper. Yields on its 10-year notes have risen to 5.84%.

Spain’s budget deficit target for next year is 3% of GDP. The government may be able to control expenses, but these are not the greatest threat to compliance with its budget.

Unemployment in Spain is above 20%. Among younger workers, the figure is as high as 50%. The jobless problems and a collapse in real estate values means that cuts will be far from sufficient for Spain to make austerity the sole aspect of its economic solution

Douglas A. McIntyre

 

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Douglas A. McIntyre

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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