Spain suffers economic, social tension in 2012

MADRID - For Spain, the year 2012 has been characterized by an economy waiting for a possible bailout from the European Union (EU) and a tense social climate.

The Spanish economy would contract by 1.3 or 1.4 percent in 2012, Spanish Minister of Economy and Competitiveness Luis de Guindos said early this month.

The country would not witness any economic growth until the third or fourth quarter of 2013, although there are a number of positive aspects that would lead to the economic recovery such as declining family and business debts as well as an increase in exports, he said.

To address the economic crisis, the government of Mariano Rajoy has implemented a number of austerity measures.

But the economic cutbacks have begun to affect the social services and have provoked considerable social tension.

Anti-austerity demonstrations

Demonstrations were held in varied sectors of society with the participation of a high percentage of citizens.

The action which had perhaps the greatest impact took place on September 25 when thousands of citizens surrounded the congress building and ended with serious clashes between police and demonstrators.

The miners' strike in June is also worthy of mentioning as it brought miners and their families from the north of Spain to Madrid to protest at cutbacks for the coal industry.

October saw a strike in state education sector in protest at cuts.

In November, a strike brought together a large number of people of different ideologies in a group known as the "White Tide," seeking to defend the current model of a free and universal public health service.

Two general strikes

The labor reform has been one of the main focal points of the tension during 2012. The measure was considered by Spanish businesspeople and the EU to be necessary in order to make the labor market more flexible.

But for the majority of workers, it means the biggest reduction in labor rights since the "Workers Statue" was passed in 1980.

The reform, approved by the government on Feb 10, provoked two General strikes, which was on March 19 and Nov 14 respectively.

It is worth noting that no government has suffered two general strikes in the same year since the return of democracy to the country.

Rising poverty and inequality

The crisis has seen the disappearance of 3.2 million jobs, of which 2.2 million were related to the collapse of the construction bubble, affecting both the construction industry and related trades. It will be impossible to replace these jobs in the short to medium term.

Number of unemployed people has reached a record high of 5.78 million in 2012, up from 4.98 million in 2011.

According to the most prestigious study on poverty "Exclusion and Social Development 2012", Spain has one of the highest poverty rates in Europe. About 22 percent of Spanish households are now living below the poverty line, while one in four more households are in a "situation of risk".

In the recession-bound nation, house eviction has become a growing problem, because scarce employment opportunities have made it difficult for many families to pay their mortgages. It has caused several suicides since the economic crisis started in the country.

The fact that the European Union finally conceded a direct bailout for Spanish banks such as Bankia, Banco de Valencia, Nova Galicia and Catalunya Caixa triggered indignation among people who believed it was unfair for the banks to receive billions in aid, while individuals received less financial help.