The following comes from an email I just received from my sister, who has just returned from Canada to her apartment in Barcelona:-

"The economic problems are also very evident - many stores, even long-standing and seemingly wealthy stores, have gone out of business and empty storefronts are everywhere, as are sales but people are not buying. The government has just come out with a reform package for labour relations, dismissal of workers, length of unemployment benefits, all of which are supposed to save money and stimulate the economy as companies will not be crippled by lay-off settlements nor have to wait too long before being able to hire replacements. The usual protests have followed but mainstream labour organisations seem to accept the reforms as necessary which, of course, they are."

The news media have been full of the complaints made by the Greeks... I thought it would be interesting to hear what is happening in the other PIGS.

Wait a minute... The change of law makes it easier to fire people, so that employers are not too afraid to hire staff? While this makes sense, I wonder what happened to the labour organisations / trade unions. In Germany or France, they are not interested in what makes sense but what their profile looks like - and they would never accept this.

Chapeau to the Spaniards!

i would have to say the opposite, i have just come back from the costa blanca, and the place was booming !, not a single shop empty anywhere, or even the need for shops to sell at discounted rate !, there where some bargains to be had ( 9 bottles of beer for 8 Euro in some bars !! )

but there was construction everywhere, people where spending, both the locals and holiday makers, and the infrusture was amazing !

"The government has just come out with a reform package for labour relations, dismissal of workers, length of unemployment benefits, all of which are supposed to save money and stimulate the economy as companies will not be crippled by lay-off settlements nor have to wait too long before being able to hire replacements."

This bit doesn't make sense to me. Why would companies wnat to lay people off only to employ new people without having to wait too long?

"The government has just come out with a reform package for labour relations, dismissal of workers, length of unemployment benefits, all of which are supposed to save money and stimulate the economy as companies will not be crippled by lay-off settlements nor have to wait too long before being able to hire replacements."

This bit doesn't make sense to me. Why would companies wnat to lay people off only to employ new people without having to wait too long?

You don't want to lay off people. However, you think twice before employing people if they get such strong protection from being laid off (at a later time) that it would cost you a leg and arm. I heard a few days ago that in France, most people are employed as temp staff for that reason. That's not healthy.

Well we're not in the EU here in Jersey but I notice a couple of places shut recently but overall no overwhelming difference.

I did see a difference in the UK the other week however...prices are on the rise...£4.50 a beer one place and train fares are astronomical.

Well we're not in the EU here in Jersey but I notice a couple of places shut recently but overall no overwhelming difference.

I did see a difference in the UK the other week however...prices are on the rise...£4.50 a beer one place and train fares are astronomical.

the train fares are just stupid !, i have to go to scotland begining of march, and it is half the price to fly !, london to scotlnd 200 quid by train or 100 by BA !, even a local ticket 25 miles journey is 14 Pounds, or 4 quid in fuel if i drive !

4.50 beer !, where did you drink smokie, will avoid that place

Well we're not in the EU here in Jersey but I notice a couple of places shut recently but overall no overwhelming difference.

I did see a difference in the UK the other week however...prices are on the rise...£4.50 a beer one place and train fares are astronomical.

the train fares are just stupid !, i have to go to scotland begining of march, and it is half the price to fly !, london to scotlnd 200 quid by train or 100 by BA !, even a local ticket 25 miles journey is 14 Pounds, or 4 quid in fuel if i drive !

4.50 beer !, where did you drink smokie, will avoid that place

The bar upstairs at Paddington station. Was wanting to watch the Murray match and that was the only convenient spot...

i would have to say the opposite, i have just come back from the costa blanca, and the place was booming !, not a single shop empty anywhere, or even the need for shops to sell at discounted rate !, there where some bargains to be had ( 9 bottles of beer for 8 Euro in some bars !! )

but there was construction everywhere, people where spending, both the locals and holiday makers, and the infrusture was amazing !

That's interesting, Boater. Tourism economy versus local economy? Spanish vs. Catalan? I wonder whether the other PIGS show similar discrepancies? Ireland, for example? Greece sounds pretty dire everywhere, but maybe the Aegean Islands are doing well!

i would have to say the opposite, i have just come back from the costa blanca, and the place was booming !, not a single shop empty anywhere, or even the need for shops to sell at discounted rate !, there where some bargains to be had ( 9 bottles of beer for 8 Euro in some bars !! )

but there was construction everywhere, people where spending, both the locals and holiday makers, and the infrusture was amazing !

That's interesting, Boater. Tourism economy versus local economy? Spanish vs. Catalan? I wonder whether the other PIGS show similar discrepancies? Ireland, for example? Greece sounds pretty dire everywhere, but maybe the Aegean Islands are doing well!

Greece is screwed by the Euro. If they had their own currency it would now be in freefall and investors and tourists would be flocking in droves.

What a teutonic mess!!

Greece is screwed by the Euro. If they had their own currency it would now be in freefall and investors and tourists would be flocking in droves.

What a teutonic mess!!

Not sure Greece is screwed by the Euro - it's more like they were screwed much more (bankcrupt) had they not been a member of the eurozone.

And it's not a teutonic mess - it's more a teutonic rescue, as Germany is paying throught their nose.

A lot of articles out there that say Germany profited from the Euro.

http://theweek.com/bullpen/column/220985/pay-up-germany

Greece is screwed by the Euro. If they had their own currency it would now be in freefall and investors and tourists would be flocking in droves.

What a teutonic mess!!

Not sure Greece is screwed by the Euro - it's more like they were screwed much more (bankcrupt) had they not been a member of the eurozone.

And it's not a teutonic mess - it's more a teutonic rescue, as Germany is paying throught their nose.

If Greece had been in control of it's own currency the government would have been able to adjust it's xchange rates to an extent, to provide some flexibility in paying back it's enormous debts.

It would have been able to devalue and thus encourage exports and tourism, both important planks in it's budget.

The lenders would have screamed, but there would have been little they could do, if they had lent Drachmas instead of Euros.

A lot of articles out there that say Germany profited from the Euro.

http://theweek.com/b.../pay-up-germany

Germany has profited enormously from the Euro.

Instead of having to price their export goods against a nayional currency reflecting the worth of the country, they have been able to sell in a currency that is a reflection of 20+ countries, none of the others being as prosperous as Germany - thus exports are sold at a discount.

In case you’re wondering why I spend so much time down here…

A lot of articles out there that say Germany profited from the Euro.

http://theweek.com/b.../pay-up-germany

Germany has profited enormously from the Euro.

Instead of having to price their export goods against a nayional currency reflecting the worth of the country, they have been able to sell in a currency that is a reflection of 20+ countries, none of the others being as prosperous as Germany - thus exports are sold at a discount.

A very interesting article. I wonder whether it would hold when analysed by economists.

Then notion that Germany profited only because the Greece (and others) didn't improve their efficiency, and that makes Germany to be at fault, is certainly interesting. However, the article fails to say why the other countries (not only Greece is mentioned) didn't improve while being in the comfort of the eurozone. I guess it was just easier to accept payments rather than to improve and become competitive on the world market.