On the fiddle

LAST UPDATED: 27 Jun, 2012 @ 16:42
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On the fiddle

THE unemployment figures in Spain are alarming.

And not just for the huge numbers of people – the highest percentage in the developed world – but for what they are hiding.

What these alarming figures really show is the complete lack of control the government has over the country and the economy.

With the black economy estimated to make up nearly a quarter of GDP, and a large portion of the unemployed actually taking home a pay cheque, it seems the system is largely redundant.

Certainly it is lacking in common sense.

Taxes are too easy to avoid and too expensive to pay, leaving the country with a problem that is nothing short of endemic.

But Spain needs to be careful; while over-estimating the figures may seem like a cushion at the moment, it could soon turn into a self-fulfilling prophecy.

The higher the figures, the lower the market confidence, leading to a weaker economy and higher unemployment.

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