(05/12/09) -

Economy in Shambles, Say Spaniards

(Angus Reid Global Monitor) – Most people in Spain believe the country’s financial situation is dire, according to a poll by Centro de Investigaciones Sociológicas (CIS). 71.3 per cent of respondents describe the economy as being in bad or very bad shape.

(Angus Reid Global Monitor) – Most people in Spain believe the country’s financial situation is dire, according to a poll by Centro de Investigaciones Sociológicas (CIS). 71.3 per cent of respondents describe the economy as being in bad or very bad shape.

In addition, 20.8 per cent of respondents expect the economy to get better in one year, while 32.3 per cent believe it will get worse.

José Luis Rodríguez Zapatero, leader of the Socialist Worker’s Party (PSOE), was sworn in as president of the government in April 2004, following his party’s victory in the legislative ballot. The conservative Popular Party (PP) had administered the government under José María Aznar since 1996. Mariano Rajoy took over as PP leader in August 2003.

In March 2008, Spain held a general election. The PSOE secured a new term in office with 43.36 per cent of the vote and 169 seats in the lower house, followed by the PP with 39.85 per cent and 153 mandates. Zapatero retained his post as head of government.

Since late 2007, defaults on so-called subprime mortgages—credit given to high-risk borrowers—in the United States have caused volatility in domestic and global financial markets and pushed the U.S. economy into a recession. A recession is defined as two consecutive quarters of negative growth. The crisis has affected the global financial and credit systems.

Spain’s economy has been severely affected by this crisis, as well as by its own setbacks in the domestic real estate market. The Spanish treasury has said that it could take "until 2011" for the national economy to fully recover. The government has pledged a stimulus package worth close to $120 billion U.S. to help the slumping manufacturing and service sectors.

On Jan. 16, Spanish finance minister Pedro Solbes said that Spain is facing its deepest recession in 50 years, and revealed that the economy will shrink by 1.6 per cent in 2009.

On May 11, Rajoy reiterated his criticism of Zapatero, saying, "He told us there was no crisis. He told us there would be full employment. (…) Today all he promises is subsidies and, in a few months time, he will ask us to be patient and offer us an herbal tea."

Polling Data

In general, how would you rate the economic situation in Spain?

And, one year from now, do you expect the economic situation in Spain to be better, the same, or worse than now?

Source: Centro de Investigaciones Sociológicas (CIS)
Methodology: Face-to-face interviews with 2,481 Spanish adults, conducted from Apr. 14 to Apr. 21, 2009. Margin of error is 2 per cent.