Blog #4 Andalucia

Addie Acuff

Labor Economics

April 24, 2012

Blog #4 Andalucía

Andalucía is the home to a tourist’s dream come true. With the sand, swimming, shopping and home to a unique culture Andalucía thrives on tourism especially from the British. While many British regard Andalucía as a great destination some such as Antonio Beteta believe that the government is not being transparent and hiding debt from the European Union. These words came at a bad time considering Spain is being viewed as the biggest threat to the European Union and the euro.  Spain has 17 regional governments which together spend four out of every ten years of Spain’s public money. The total is as much as bailed out Greece and Portugal spend together. Last year the regions failed to cut their costs and the country had to borrow €17billion more than expected.

Andalucía is one of the eight regions that refused to meet the demands of the government and even had a higher deficit than the year before. Since 2006 civil servants have increased their payrolls by 42%. Betata believes that the reason Spain is suffering could be due to the fact that the Spanish construct flashy buildings that end up being under used. Since the regions control health and education they are in charge of making major cuts. Rajoy announced that €10bn in health and education will be cut this year. This year a new law was passed that allows the Spanish government take over region’s finances if they are in need of drastic economic change. Since Andalucía has a government with a socialist head the region will probably end up being taken over by Rajoy since he is the opposing party.

While Andalucía could open more jobs with the growth of tourism they first need to make many cuts. If the region decides to continue with its opposition against reform the finances will be taken over by the central government. This has already led to many protests and the people will not be happy if they have to change their ways to conform to the central government. Andalucía has a strong culture that is at risk of losing its financial control. One can only hope that the proper changes are made so that the central government does not need to take over.

http://www.guardian.co.uk/business/2012/apr/13/andalucia-eurozone-crisis-spanish-regions

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2 thoughts on “Blog #4 Andalucia

  1. Yep you are right, thank you! For everyone that reads this, I used that cited webpage. The first few sentences were taken from the article directly. I did not mean to wrong the person I just thought that by slightly rewriting this it would be good. What they wrote was very well written.

    Reply

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