SPAIN has been dealt a big blow ahead of the G20 summit in Paris today after having its credit rating cut.

The decision to downgrade the country from AA to AA- by rating agency Standard and Poor (S&P) comes after fellow agency Fitch also slashed Spain’s rating last week.

“Despite signs of resilience in economic performance during 2011, we see heightened risks to Spain’s growth prospects due to high unemployment, tighter financial controls, the still high level of private sector debt, and the likely economic slowdown in Spain’s main trade partners,” said an S&P statement.

The agency downgraded its forecast for Spanish economic growth to roughly one per cent for 2012, a cut of 0.5 per cent from its February prediction.

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  1. ….. what rubbish all this is. Can anybody out there explain what real advantages a country like Spain has because of the Euro ?

    I just see a country desperately trying to be like the rich northern Europeans thus giving up all that was so likable here, mainly the culture and laid back lifestyle.

    Remember the phrase:

    “The Spanish work to live, while the Germans and such live to work …..”

    Now because they are trying to fit into this template of an industrial nation they have actually become unlikable because there is just no way the shoe will ever fit so they seem to be limping around like a Captain of a ship with no clear heading ……. isn’t it much healthier and cooler to wear sandals anyway.

  2. Din and Fred – both points made well! Responding to these: a) there is NO currency in this World that is not back by a Government… and the “EU” is NOT a government b) in the EU Commission/MEP’s effort to establish their own Gravy Train of unaccountable compensation & benefits, they have screwed their own Golden Goose and the nations’ taxpayers NOW see them for what they are. Their latest Budget increase says it all. c) Spain and other governments have shown a steady inability to pay their bills on capital projects, to employees, etc. d)citizens who have benefitted from the EU largess, now refuse/aka violently demonstrate AGAINST, their government’s spending restraints – take the cuts from someone else… not me! and e) EU member states have been “less than accurate!” in economic & employment projections which Rating Agencies do NOT like… nor investors who hold the $$. So read my lips,it’s going DOWN.

  3. Din – in partial answer to your question, “Can anybody out there explain what real advantages a country like Spain has because of the Euro ?” … a tremendous amount of PAID INFRASTRUCTURE all paid by the EU currency. That has, and will continue to uplift Spain’s economy into the Modern Age.
    But since Spain has “milked the cow for all she’s worth”, it’s now time to withdraw and control their OWN currency. The EU can’t do it FOR Spain – “there ain’t NO more money!”

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