Changes

Following peak growth years in the late 1980s, the Spanish economy entered into recession in mid-1992. The economy recovered during the first Aznar administration (1996-2000), driven by a return of consumer confidence and increased private consumption, although growth has slowed in recent years. Unemployment remains a problem at 8.47% (2007, first quarter), but this still represents a significant improvement from previous levels. Devaluations of the peseta during the 1990s made Spanish exports more competitive, but the strength of the euro since its adoption has raised recent concerns that Spanish exports are being priced out of the range of foreign buyers.

Following peak growth years in the late 1980s, the Spanish economy entered into recession in mid-1992. The economy recovered during the first Aznar administration (1996-2000), driven by a return of consumer confidence and increased private consumption, although growth has slowed in recent years. Unemployment remains a problem at 8.47% (2007, first quarter), but this still represents a significant improvement from previous levels. Devaluations of the peseta during the 1990s made Spanish exports more competitive, but the strength of the euro since its adoption has raised recent concerns that Spanish exports are being priced out of the range of foreign buyers.

Following the financial problems starting in the [[USA]] the economy of Spain had serious problems. These were handled very badly by the socialist government then in power.

Following the financial problems starting in the [[USA]] the economy of Spain had serious problems. Like the US, it had a huge housing bubble.  Unlike the US, the banking sector relied on small Cajas de Ahorros.  When the housing market collapsed, most of the Cajas de Ahorros found themselves with red balance sheets, sparking the Spanish banking crisis.  The collapse of the housing market also had a devastating effect on the construction and service sector.  A surplus of housing also led to the collapse of prices in the rental sector.

 

Spain's public sector is proportionally smaller than most, including those of the US.  Nevertheless, Mariano Rajoy's government has sought to privatize most of the remaining state-run sector while increasing subsidies to banks like Santander and Bankia and cutting investment in infratructure.  The cost of these reforms has further burdened the Spanish the economy, causing considerable social unrest as cuts to education and health start to bite people find less money in their pockets.

==History==

==History==