Messages in the Media - University of Toronto

2011 IN REVIEW:
In 2011, the relationship between Spain and the EU
was largely based on the economy. The international financial
crisis and the sovereignty debt crisis in Spain were at
the forefront of EU considerations. While the Spanish
Prime Minister did not request a bailout, the EU was concerned
it would have to help consolidate Spain’s debt
which would have essentially crippled the EMU along with
the EU. Despite being straddled with one of the largest
debts in Europe as well as the highest unemployment rate
of any other EU member, Spain was able to improve its
economy by the end of the fiscal year. Largely due to EU
deliberations and the Lisbon Treaty, Spain was forced to
actively seek new ways of improving its economy as well as
to suggest new ways to help improve the Euro and thus the
economy of the union. The EU was not optimistic in Spain’s
economic recovery, especially after its credit rating downgrade
by Moody. The Spanish government remained optimistic
in its belief of a recovering economy. Spain not only
did not request a bail out from the EU, but it managed to
increase the minimum wage and boost pensions by the end
of 2011. Particularly, the main economic concern the EU
had with regards to Spain was the sovereign debt crisis and
the “downloading” of this debt on the private sector while
trying to refinance the banking system. This consideration
dominated in Lisbon Treaty deliberations and detracted
from Spain’s usual zeal in pressuring the EU to get involved
with the ongoing problems in Mediterranean and Arab
countries.
Another important topic relates to Spain’s high unemployment
rates and its influence on the country’s attempt
to close its labour market to workers from Romania.
This was chiefly motivated by the government’s desire to
protect its economy and decrease the unemployment rate.
Also noteworthy is the fact that while having Europe’s
largest fishing industry, the lack of any Spanish restructuring
of this industry to ensure preservation, prompted the
EU to offer potential solutions for the amelioration of the
situation. Despite many other crucial issues, such as the
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