Friday, December 21, 2012

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”.  


Read more: http://www.telegraph.co.uk/finance/financialcrisis/9759375/Doubts-remain-over-Spains-austerity-miracle.html

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