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.


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.