In this report, we outline how the eurozone crisis has evolved. We discuss how European Monetary Union (EMU) membership shaped both the economic crisis itself and the crisis response.
The peripheral countries are at very different stages of economic recovery and rebalancing. Growth has returned and private and public balances have improved. Unemployment and public debt levels remain high, whilst part of the rebalancing may just be cyclical.
In Spain, the build-up of large private sector imbalances related to a housing boom was the prime cause of the crisis. Spain has rather successfully reformed its banks and economy, but the crisis leaves scars in the form of high unemployment and public debt.
Economic Update Dutch version
We expect the Spanish economy to grow by 3¼% in 2015 and 2½% in 2016. Domestic demand is the largest contributor to growth, but will lose some strength next year as temporary boosters fade