Spain in eurozone crisis cross-hairs - CNN.com - 0 views
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crisis
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Tomomi Nakamura on 07 Jun 12This suggests that the article will be about the economic (macro) problems which the eurozone has been going through.
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financial crisis
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borrowing costs
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unemployment rates at devastating levels.
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bad investments
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When the economy collapsed in 2008, people lost their jobs -- and with them their homes.
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strengthening the banking sector.
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Spain also has an unemployment crisis, with more than half those under 24 out of work, and almost one in four people overall. Spain's jobless rate has helped pushed the eurozone's total unemployment rate to 11% -- its highest since the eurozone was created in 1999
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The situation in Spain is developing like a "perfect storm," with money being pulled out of the country, despite the desperate need to stem capital flight and support its banking system.
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This leaves Spain in a precarious financial state, driving investors away, pushing up its borrowing costs and making it more likely to need a bailout.
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The retirement age has been raised from 65 to 67, while public sector wages and welfare payments have been cut.
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Academics and financiers are also wading into the policy debate, with billionaire George Soros saying in a speech this month that the "wrong remedy" has been applied to the crisis. "You cannot reduce the debt burden by shrinking the economy, only by growing your way out of it," he said.