Spanish Prime Minister Jose Luis Rodriguez Zapatero , isolated in parliament and his popularity slumping amid the biggest budget cuts in 30 years, is finding his efforts aren’t paying off internationally either.
Spanish elections next month may expose wider-than-reported regional deficits as local governments take power, risking higher bond yields and testing the country's ability to withstand Europe's debt crisis.
Four years ago, Wendy Atkinson Navarro, 36, had a job, a husband and a home. Now, she is divorced, out of work and living with her mother near Madrid, a casualty of Spain’s recession that has driven unemployment above 24 percent and is unnerving young people.
Spanish Prime Minister Jose Luis Rodriguez Zapatero ’s Socialist party had its worst electoral setback in more than 30 years, prompting a shift in regional power that risks swelling the public deficit.
At 10 a.m. on a hot Friday, Antonio Rodriguez Alvarez and his brother, Francisco, sit outside a bar in Ecija, Spain, drinking an anise liquor with water. Unemployed laborers, they visit the job center daily at 9 a.m. in search of work. When there is none, they repair to the bar and worry.
Spanish Prime Minister Mariano Rajoy named a former Lehman Brothers Holdings Inc. banker and a budget professor as his finance chiefs, tasking them with overhauling an economy that risks being engulfed by the debt crisis.