Tuesday, January 18, 2011

Spain is so screwed!

Great chart from the Angry Bear Blog on the evolution of labor costs in the EU (clic the pic for a more glorious image):






The orange line that inexorably rises? Spain.

The green line on the bottom that ends up almost 30% below Spain? Germany.

Chances of Spain reversing this without years of economic and social pain given their membership in the Euro? Zero.


2 comments:

PLW said...

Is this convergence? I'd like to see them not individually normalized. To be fair, I know bupkis about European labor markets, so maybe that's a moot point.

BR said...

Greece is more amusing to me. Spain has only a consistent systematic problem. Greece on the other hand, it makes me think of intermittent violence in the streets.