Spain brought back to reality

The business daily Les Echos analyses the impact of the current global economic crisis on Spain: "Just like the French authorities, who in 1996 claimed that the Chernobyl cloud stopped at the French border, the Spanish head of government José Luis Zapatero has long tried to convince the public that his country would not be affected by the 'sub-prime crisis'. ... Today the reality can no longer be denied. The economy is freewheeling. During the second quarter growth stopped at 0.1 percent. In the second half of the year it could even decline. ... Driven ... by soaring oil and food prices, inflation is accelerating. It currently stands at over five percent and is hampering consumption. ... José Luis Rodriguez Zapatero is beginning to react. ... The measures ... are aimed at helping those worst affected, the construction sector and small businesses. But they are unlikely to help Spain's growth rate."

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