Doubts remain over Spain's austerity miracle
Spain has made dramatic strides in cutting labour costs and reviving exports
since the debt crisis erupted, turning the country into the new poster-child
of Europe’s austerity regime.
Fresh data from the OECD show that Spain has narrowed the gap in “unit labour
costs” with Germany by 5.5pc over the past year alone. It has clawed back
4.6pc against France and 6.6pc against Austria since late 2011, as it
slashes pay and pursues a scorched-earth policy of “internal devaluation”.
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