Business

As Spain Falls Into Recession, Anti-Austerity Protests in EU Grow

New data shows Spain is back in recession. The country’s economy shrank 0.3 percent in the first quarter compared with the previous three months. The contraction follows a similar decline in the last three months of 2011.

This is also Spain’s second recession in three years.

But that‘s not stopping massive crowds from taking to the streets to protest conservative Spanish Prime Minister Mariano Rajoy’s budget cuts and emergency “austerity” measures.

As Spain Falls Into Recession, Anti Austerity Protests in EU GrowThousands demonstrate against education and health care spending cuts in Madrid, Sunday, April 29, 2012 (Photo: Daniel Ochoa De Olza/AP)

The contraction in Spain’s economy is dimming hopes that the government will be able to cut its budget deficit as predicted and raises the specter that the country might be locked into a downward financial spiral.

Spain now has 24.4 percent unemployment and a deficit of 8.5 percent as of the end of 2011, which it must reduce to 3 percent in 2013. Furthermore, “[g]ross domestic product contracted 0.3 percent,” according to Bloomberg.

Investors are worried that Spain will not be able to support its banks, which are burdened with massive amounts of bad loans from an imploded property market. But rescuing Spain, the fourth-largest economy in the 17-country eurozone, might prove too expensive for the continent’s bailout funds.

Simply put, the Spanish crisis may actually have some people longing for the days of the Greek crisis.

Ratings agency Standard & Poor‘s downgraded Spain’s government debt to just three notches above junk Friday. On Monday S&P lowered its rating for 11 Spanish banks, which are loaded with bad debt from a collapsed housing market.

And rather than embrace what some consider to be the only option out of economic ruin (i.e. austerity), thousands of Spaniards poured out into the street to protest Germany’s proposed emergency reforms.

“With Spain’s largest unions leading marches involving thousands of protesters in 55 cities yesterday, Prime Minister Mariano Rajoy’s government battled to prevent Spain from becoming the next country to seek a bailout,” Bloomberg reports.

As Spain Falls Into Recession, Anti Austerity Protests in EU GrowA woman leaves a banner after a demonstration against education and health care spending cuts in Madrid, Sunday, April 29, 2012 (Photo: Daniel Ochoa De Olza/AP)

“Watching Spain now is exactly like watching Ireland around October 2010 before Ireland was forced into its bailout,” Megan Greene, a senior economist at Roubini Global Economics LLC, told Bloomberg Television’s “Street Smart” on April 27.

“The government can’t win no matter what it does,” she adds.

Still, despite the union-led backlash against austerity, German Chancellor Angela Merkel is not backing down from EU’s “fiscal pact.” You know, that thing billionaire philanthropist George Soros has been vociferously railing against for the last two months.

“There will be no new negotiations on the fiscal pact,” Merkel told the Leipziger Volkszeitung in an interview published on April 28. Merkel has long maintained that the eurozone financial crisis can’t be solved without cutting debt.

However, despite the German chancellor’s resolve, pressure is mounting against deep-cutting austerity measures.

“Protesters in Madrid yesterday filled the city’s Puerta del Sol square despite the rain, with placards reading ‘No bread, no peace,’” Bloomberg reports.

Many analysts expect the EU’s anti-austerity protests to grow much larger in the coming months.

The Associated Press contributed to this report.

Comments (82)

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  • Clmsadjman
    Posted on April 30, 2012 at 7:08pm

    This is exactly what happens when you create a nanny state and the money runs out. Everything is cool as long as the bird feeder is full, but wow look what happens when its getting close to empty. The EU has tried to create this Utopia that is failing as communism did in the old Soviet Union. When you kill self reliance in people you make drones and that is what most Europeans are these days. A once great civilization reduced to a bunch of complaining protesting babies that couldn‘t take care of the themselves if a gun was put their head oh that’s right no one has a gun either guess there won’t be any armed rebellon. See what happen when you strip people of their dignity they become powerless against the all powerful government we are not far behind. This is Obama vision a Eurpoean style failed Utopia.

    Report Post »  
    • midnightgolfer
      Posted on April 30, 2012 at 7:31pm

      This is also exactly what will happen when a more conservative candidate replaces Obama and the current Senate leadership. The rabble-rousers always work ten times as hard when a government starts swinging back towards center. Even they know it’s hypocritical, but that never stops them. The press will be on their side, all the more. (Until one-day, new media replaces them.)

      Report Post »  
    • lukerw
      Posted on April 30, 2012 at 7:49pm

      Socialist Insanity… the inability to Reason and Recognize Reality!

      Report Post » lukerw  
    • RightPolitically
      Posted on April 30, 2012 at 8:12pm

      Your are so correct. Although this kind of crap fails over and over again, genius politicians never stop trying. Obama is certainly one of those. What’s immoral about it in my view is the fact that deep down, they it won’t work long-term. But that doesn’t concern them because leftist pols are most intent on punishing hard work and rewarding whiners and complainers. That’s where their votes are!

      Report Post » RightPolitically  
    • lrb14
      Posted on April 30, 2012 at 10:16pm

      The lesson of the grasshopper and the ant being displayed in real time.

      Report Post »  
    • 13th Imam
      Posted on April 30, 2012 at 11:11pm

      I keep on asking all my DEMOCRAT socialist friends how they keep on spending more and more without making more . None of them can give me a coherent reply. Go Figure.

      Report Post » 13th Imam  
    • Goldomark
      Posted on April 30, 2012 at 11:50pm

      The problem is that Spain can‘t print money to pay it’s dept because of the Euro. It doesn‘t have control of it’s currency. Eventually, if Europe wants to keep the Euro, they will have to have one central bank that can sell Euro bonds to finance the depts of countries. Plain and simple.

      But this will mean they will want a elected European parliament with more power than it has now.

      Report Post »  
    • nzkiwi
      Posted on May 1, 2012 at 3:33am

      If I had any Euros (the currency), I would drop them like a hot rock.

      Politicians of all countries have been bribing voters with money that they don’t have in order to get elected. And they have been doing it for decades. There is only one thing to do and that is cut entitlements. There will be pain and riots, but there is simply no alternative.

      Countries must first cut their spending in a managed, but determined way, and then start reducing their debt.

      We must either do it to ourselves, or it will be done to us. Those are the only two options.

      Report Post »  
    • Independent4233
      Posted on May 1, 2012 at 8:28am

      “This is also Spain’s second recession in three years.”

      It doesn‘t seem to bring any kind of understanding to the press when they’re informed that the global economy never made it out of the first recession. Monetizing the debt is hardly the same thing as natural economic growth via a sound industrial base. It’s a temporary stop-gap measure, but the press can’t seem to grasp that concept and repeatedly writes about a recovery in progress, when there is no recovery, nor has there been any since the collapse of 07-08.

      Top notch economist have been declaring that we have been in a period where government funds stimulated the economy, not an economic turnaround.

      For some hare-brained reason radical leftists seem to think the putting on a happy face and pretending all is well is all that is necessary to solve any problem, socially or economically, and they are seeing the results of their idiotic concepts reach fruition right now as we continue our downward spiral into a depression and multicultural breakdown.

      Soon, the phrase, “diversity is our strength,” will be outlawed as a lying phrase that is on a par with the worst propaganda the Leninists ever put out. And austerity programs in the US will domino over from Europe and cause wide-spread civil conflict that will be unprecedented since the civil war.

      Report Post »  
  • DocScience
    Posted on April 30, 2012 at 6:32pm

    Another round for the house, put it on my children’s tab.

    Report Post »  
    • socialism.rocks
      Posted on April 30, 2012 at 6:49pm

      you moronic americans dont know american hedge funds working in concert with banks short sold the euro… purposely crashing it- and putting insurance on it… the europeans know that socialism is not the problem its capitalism it was economical terrorism…
      spain is purposely going to default then go through austerity… get it understand they are going to default and leave the crapitalists holding the debt … screwing all the american big banks bank of america goldmanchraps……..
      and its in the trillions of dollars when spain and italy do it
      it will completely crash the usa stockmarket
      but its all fair in economic warfare isnt it…..
      americans are dumber then a box of pet rocks you kick down the street
      its going to be sucky to be a hedge fund manager or banker soon…cause the people will demand their heads…. thats why bankers are exiting.. out by the thousands…
      they will go before a international court just wait and see

      Report Post » socialism.rocks  
    • bioya1
      Posted on April 30, 2012 at 7:47pm

      @Socialism Rocks – The only rocks around here are the ones in your head. No nation under socialism has amounted to a hill of beans. Their citizens are the property of the state. One has to look no further than Scandinavia, where Muslims are slowly taking over and the native population seems helpless to stop it.
      No socialistic country has ever contributed anything positive to the world. They present an excellent example of what to avoid.

      Report Post » bioya1  
    • lukerw
      Posted on April 30, 2012 at 7:54pm

      The Roman Emperor Caligula was CRAZY… and when he ran out of Money… he directed a Roman Legion to Attack the Sea… and after much stabbing of the water… they brought back Sea Shells as Tribute… which he told everyone was the New Money!

      Hail Caesar!

      Report Post » lukerw  
    • socialism.rocks
      Posted on April 30, 2012 at 8:07pm

      lukerw Ceasar was a liberal… he killed the rich plutocrats

      he gave the land back to actual roman citizens….

      oh what do you know of history..

      early republic or byzantinian

      all the great roman imperators were socialists the ones who are remembered~

      Report Post » socialism.rocks  
    • lrb14
      Posted on April 30, 2012 at 10:18pm

      @socialismrocks. Just to be clear. You are citing a murdering tyrant as your source of inspiration? Good to know.

      Report Post »  
  • marybethelizabeth
    Posted on April 30, 2012 at 6:32pm

    The date does not show that Spain is in a recession

    A recession is two consecutive quarters on negative growth ( or 2 out or the past 3).
    Spain is not in a recession.

    Report Post » marybethelizabeth  
    • The-Monk
      Posted on April 30, 2012 at 6:50pm

      @mary be the liz a beth
      You’re right… it’s much worse.

      Report Post » The-Monk  
    • soybomb315
      Posted on April 30, 2012 at 7:32pm

      they should define recession as when your debt grows faster than the economy…

      Report Post » soybomb315  
  • NeoFan
    Posted on April 30, 2012 at 6:17pm

    Each Spanish citizen should take out a loan for ten million euro and buy food for the poor on mars as a protest.

    Report Post »  
  • team1blazer
    Posted on April 30, 2012 at 6:08pm

    This is how the socialists planned it….overload the system with “gifts” given from the “wealthy”, deamonize the “wealthy”, demand more, and then come in as the knight in shining armor to save the day….problem is, the socialists are the problem to start with. Socialism has NEVER worked for ANY society. Socialism is a great theory, but as Margaret Thatcher said, “eventually you run out of other peoples money”.

    Report Post » team1blazer  
  • MrKnowItAll
    Posted on April 30, 2012 at 6:07pm

    HMMMMM! Does anyone consider Fannie Giving my wife’s sister a $80,000 Home Loan and all she get’s is SSI. Total amount $440.00 a Month in Income. With a House Payment of $435.00 dollars a Month. I tried to talk sense to her. I asked her how she planned on paying for Electricity, Heat, Water, Food and stuff most people know you need. She didn’t care. She had a Home. For three entire months. Until Winter and she found out there was no duct work to carry the heat she couldn’t pay for. I swear this Story is 100% TRUE. I have no reason to lie about something like this.

    Report Post » MrKnowItAll  
    • WampaOne
      Posted on May 2, 2012 at 6:45pm

      It‘s all true except the part about Fannie Mae giving your wife’s sister a loan. Freddie and Fannie back loans that the banksters make, they don’t give the loans.

      Report Post »  
  • soybomb315
    Posted on April 30, 2012 at 6:03pm

    Ron Paul wants to make cuts to government spending (austerity). Romney does not want to cut government spending and just wants to “slow the rate of growth”.

    It’s funny that Ron Paul haters try to label us as being same as the protesters….because actually the moderate republicans and protesters are both anti-austerity. Moderate republicans, get ready to go occupying

    Report Post » soybomb315  
  • RON MARTIN
    Posted on April 30, 2012 at 5:59pm

    Our republic has ended and totalitarianism is here. It ended because most of you, Beck, Levin, Hannity, etal.were modern day Thomas Paines and Paul Reveres but not a single Samuel Adams, John Hancock or George Washington has come forth to lead in overthrowing this tyranny. 99% of you are counting on elections to rescue us from the abyss. That option is long past. You all revere our founding fathers but fear to emulate or even discuss the heart-wrenching decision that was forced upon them by the tyranny of King George III. Until the return of Jesus Christ order can be restored and maintained only by periodically shedding the blood of patriots and tyrants. Romney will lose and even if he won our demise would stay on schedule…quick! Obama will be reelected, Obamacare will be the law of the land and there will be no 45th President. Normalcy bias will prevent most from agreeing with me. I really don’t care.

    Report Post » RON MARTIN  
    • soybomb315
      Posted on April 30, 2012 at 6:05pm

      if washington or jefferson were to return today, the republicans would reject him. Ron Paul advances the ideas of the founders and the constitutoin – and is despised by most in the republican party

      Report Post » soybomb315  
    • socialism.rocks
      Posted on April 30, 2012 at 10:00pm

      you both are wrong they were all socialists the founders
      they loathed conservativism and libertarianism is just laughable its anti american at its core…
      the founders if they were alive today would be tar and feathering glen beck rush limbaugh…
      they hated conservatism they fled from it — they killed it during the revolutionary war…
      when understand everything all the founders stood for was anti-conservative..

      Read their own works~

      Report Post » socialism.rocks  
  • BlackCrow
    Posted on April 30, 2012 at 5:59pm

    Socialism is a wonderful thing……until you run out of other people’s money to spend.

    No cuts? Where do you purpose to get the money from? Borrow it? From whom? Oh details, details.

    Report Post » BlackCrow  
    • socialism.rocks
      Posted on May 4, 2012 at 6:11am

      Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.
      - Abraham Lincoln << real republican

      others people money you are another "anti-free enterprise republicans"there is lots your kinda of idiocy out there..
      free enterprise is the people choosing the value of wages of services and products you can use thatcher stossels glen becks slogans as if they are true but anyone with a brain knows
      with out socialism there is no monetary system…
      anytime a group of humans decides to give something of value-"monetary system" also means they can de-value it
      you can hold a trillion dollars be the richest person on earth but as soon as people decide it has no value anymore its worthless get it understand ****** boy but keep your slogans
      it just the intellectual intellentsia of the right… "reetarted"

      Report Post » socialism.rocks  
  • The-Monk
    Posted on April 30, 2012 at 5:58pm

    Bye, bye….

    Report Post » The-Monk  
  • termase
    Posted on April 30, 2012 at 5:44pm

    Man, Glenn hit this one out of the park when he predicted that this would happen over a year ago.

    Report Post » termase  
  • AvengerK
    Posted on April 30, 2012 at 5:43pm

    Spain bought the “green” delusion. It created a “green” economy much like what Obama wants to create here. As a result Spain has lost 2.2 jobs for every 1 “green” job created (many of which are temporary jobs in the first place). It will be subsidizing “green” jobs for the foreseeable future (I know…they’re broke..but they‘ll be subsidizing jobs that can’t sustain themselves..the madness of liberalism). It’s unemployment rate is roughly 25% and the youth unemployment rate much higher around 50%. Add to this the usual Euro-socialist cradle-to-the-grave entitlements that are totally unfunded and you have a disaster in the making. Germany tried to shore up Greece not to save Greece but to give the EU a chance to shore up Spain and Italy who are both facing terrible debt problems for their unfunded debt (read: entitlement programmes).
    Then you’ve got the madness of the left in these countries saying that should be spending more now and fix the debt issues later (sound familiar? Obamanomics). The EU will change, this is inevitable. Whether the EU collapses completely or is drastically reduced in member states remains to be seen but the EU will not be the same after this all plays out. Germany must keep the EU to keep it’s competitiveness in exports. A return to the deuschmark would see the value of German currency raise by around 20% and thus price it out of the export market. The netherlands‘ government is in turmoil over it’s own “austerity” meas

    Report Post »  
  • vox_populi
    Posted on April 30, 2012 at 5:40pm

    What’s that? The austerity measures conservatives have been pushing for have only deepened the crisis, exactly in the way the Left said they would?

    INTERESTING.

    Report Post » vox_populi  
    • EqualJustice
      Posted on April 30, 2012 at 5:49pm

      Slight COMPREHENSION PROBLEM? ANTI-AUSTERITY measures being PROTESTED. They don’t want to cut spending. You have to HELP yourself first. They are trying to SAVE the country from the progresives and COMMIES.

      Report Post » EqualJustice  
    • Goldomark
      Posted on April 30, 2012 at 5:52pm

      The European central bank needs to sell Euro bonds. This would help with the dept crisis.

      Hopefully, France’s Socialist candidate at the presidential elections will get elected and renegociate a new deal that will let governments inject money in their economies, stimulating economic growth.

      Once growth happens, then you can talk of austerity. This should teach neoliberal economists that Keynesian economics works.

      Report Post »  
    • The-Monk
      Posted on April 30, 2012 at 5:57pm

      @vox_populi
      I see watched the Martin Bashir show today. That’s exactly what he said word for word.

      Report Post » The-Monk  
    • AvengerK
      Posted on April 30, 2012 at 6:02pm

      VOX…what do you understand of Spain’s economy that led to this point? See my post above if you’re at a loss.

      Report Post »  
    • soybomb315
      Posted on April 30, 2012 at 6:14pm

      when an economy has malinvestments or has misappropriated resources, the natureal result is a recession. Because governments can print money and go into debt – the recession can be delayed (but it will be worse). One way or another, the recession will eventually come.

      to blame austerity for their recession is like blaming the sunrise on your alarm clock

      Report Post » soybomb315  
    • Lord_Frostwind
      Posted on April 30, 2012 at 6:50pm

      When you control the money VOX you can demand what people do. Why do you think the Bible often referred to debt as slavery? In one stroke, Germany will become the ruler of Europe, and this time without tanks and planes, they’ll just control all the goodies the euros are clamoring for.

      Report Post » Lord_Frostwind  
  • KickinBack
    Posted on April 30, 2012 at 5:36pm

    Spain is gettin‘ it’s Greek on.

    Report Post » KickinBack  
  • The-Monk
    Posted on April 30, 2012 at 5:34pm

    Momma always said not to run with scissors….

    Report Post » The-Monk  
  • jnobfan
    Posted on April 30, 2012 at 5:30pm

    Its a shame but all it takes is for good people to do nothing and everything goes to hell.

    The people were lazy. Just how was Europe supposed to compete with China getting 7 weeks vacation and retiring at 55?

    How? The US will pay for our military thats how and it worked for awhile but now the babyboomers are retiring and guess what? There is no money. Its all gone.
    We here in the US are riding the same crazytrain a few years behind you.

    Report Post »  
  • suedstate
    Posted on April 30, 2012 at 5:26pm

    Like Maggie Thatcher so eloquently put, the troulbe with socialism is that sooner or later you run out of other peoples money.

    Watch France they are about to elect ANOTHER SOCIALIST, they never learn as long as someone else is paying the bill.

    Report Post »  
  • VoteRightDammit
    Posted on April 30, 2012 at 5:25pm

    “You say we spent too much and must cut back ?

    WHAT ???????????

    I SHAN’T CUT BACK! I SHAN’T .. I SHAN’T … I SHAN’T !!!!!!!!!!!!!!!!! ”

    Yep – lets shuck off the yoke of freedom and be more like Europe.

    Report Post » VoteRightDammit  
    • EqualJustice
      Posted on April 30, 2012 at 5:50pm

      They should have CUT BACK a LONG TIME AGO during the first warnings. Take notice Americans…

      Report Post » EqualJustice  
  • Beckofile
    Posted on April 30, 2012 at 5:22pm

    You would almost think glen is the modern day Nostradamus. Did he not tell us this years ago?

    We should do what they did to find the poor house. I have so so much hope now that we have obamao but the change has all been stolen by the IRS.

    Report Post » Beckofile  
  • Baddoggy
    Posted on April 30, 2012 at 5:15pm

    Government teat suckers unite. They think money should never run out. What FOOLS!

    Report Post » Baddoggy  
    • Natures_God
      Posted on April 30, 2012 at 5:26pm

      -
      People need to see this video
      Ron paul exposed!
      Video of Ron Paul dancing naked in his back yard from 15 years ago.
      This will END Paul’s campaign run for presidency !!!
      -
      http://www.youtube.com/watch?v=snWMDRVrh64

      Report Post »  
    • The-Monk
      Posted on April 30, 2012 at 6:07pm

      @Natures_God
      It‘s already over for Ron Paul and I’m not clicking on your very sick link. Have some decency son….

      Report Post » The-Monk  
    • ENDtheFED2012
      Posted on April 30, 2012 at 7:24pm

      @ THE-MONK

      It’s far from over for Paul.
      Paul has won the States of Iowa, Minnesota, Washington, Alaska, Massachusetts, Louisiana
      As of 4/10/12 the delegate count was…
      Romney = 601
      Paul = 391
      Santorum = 197
      Gingrich = 77
      Paul picked up another 200 delegates so that would put Paul’s delegate count at 591 as of 4/29/12
      Romney didn’t pick up that many more delegates…you have to check around to see.
      Most of Santorum’s and Gingriches delegates are moving over to Paul when they officially drops out.
      -
      Go to this YouTube Channel to see the latest reports on GOP Primary delegate counts.
      http://www.youtube.com/user/matlarson10/videos
      Dr. Ron Paul is in it to win it.

      Report Post » ENDtheFED2012  
    • The-Monk
      Posted on April 30, 2012 at 8:33pm

      @ENDtheFED2012

      http://projects.wsj.com/campaign2012/delegates/

      What say you about this WSJ calulation? Click on April 24th also. Paul is at 80 not 391. You need to stop getting stats from RP sites.

      Or show me your facts please.

      http://projects.wsj.com/campaign2012/delegates/

      Report Post » The-Monk  
    • The-Monk
      Posted on April 30, 2012 at 10:32pm

      @ENDtheFED2012
      Please come back with some facts and not RP supporters “guessing” about which way delegates may or may not go. : )

      Report Post » The-Monk  
    • Therightsofbilly
      Posted on April 30, 2012 at 10:44pm

      Hi Monk,

      I like the new look !!!!

      I’m going to keep a close eye on his eyes

      Report Post » Therightsofbilly  
  • sb36695
    Posted on April 30, 2012 at 5:15pm

    Those are professional signs. Guess the union still has money.

    Report Post »  
  • EqualJustice
    Posted on April 30, 2012 at 5:10pm

    SPONGE BOB is on my tv right now and the episode is about WORKER’S UNITED and they are teaching them how to go on strike against the oppressive employer, Mr. Crabs! I am dead serious! It’s unreal! They even said, “You let a SCAB by without a SINGLE THREAT!” INDOCTRINATION MUCH?

    Report Post » EqualJustice  
  • classicalgas
    Posted on April 30, 2012 at 5:09pm

    This is America if Obama gets a second term! God bless us all if he does.

    Report Post » classicalgas  
  • MittensKittens
    Posted on April 30, 2012 at 5:08pm

    Global economy, what a concept!

    Report Post » MittensKittens  
  • RightPolitically
    Posted on April 30, 2012 at 5:04pm

    Euro-socialists just don’t get it….. The pot of gold does have a bottom to it and they’re reached it. But they don’t care. It’s never run out before and magically some how, they believe it never will……WE’LL SEE!

    Report Post » RightPolitically  
    • RLTW
      Posted on April 30, 2012 at 5:58pm

      As long as they have checks they must have money…right?

      Report Post »  
    • RightPolitically
      Posted on April 30, 2012 at 6:26pm

      Once people are given something from somebody else that they really didn’t earn themselves (socialism) they develop an unwarranted sense of “entitlement” to it. As the socialist cycle runs its course, as it ultimately must do, and funds for such largess are no longer available, demonstrations begin. They lead to nastier demonstrations and then to outright riots and destruction. Happens EVERY TIME and don‘t think it won’t happen here eventually. My prediction is that Europe will collapse financially sooner rather than later and it will get ugly, very ugly. The EU will be finished and to totalitarianism will ensue!

      Report Post » RightPolitically  
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