MrsBlackthorn Sun 11-May-14 18:22:41
Hi yes it is which is why I dealt with both issues ('factors') separately.
By leaving the Euro, Spain could devalue - this is ultimately the only way to increase economic competitiveness. They can diversify their economy further was my point regarding tourism, there being scope for growth. Whether it is 'clustered' matters not it will increase tax revenues and provide employment opportunities.
Can you provide a source for your statement - "Leaving the Euro would have had huge negative impacts on transaction costs and inward investment for other sectors with high levels of exports (farming, automotive, energy, technology), creating further job losses."
Why would devaluing a currency (and so therefore devaluing the labour market) create job losses? On the contrary, labour becomes cheaper and exports too! Business and investment are more likely to increase - that has been proven through the decades. Where the Spanish economy will suffer is through imports - they would become more expensive. As for transaction costs, there are plenty of example of EU states outside of the Eurozone successfully trading and in many cases doing better than those inside the Eurozone.
On EU membership it has been well documented that unemployment has risen over the years since Spain joined and this trend has shown no sign of changing. How do you explain this? Source below
"Contrary to what politicians hoped, membership of the EU has not
reduced unemployment. The unemployment rate was rising even in the late 1980s, which were years of high economic growth, and well into the 1990s. In 1998, 20 percent of the working population were unemployed, according to Eurocom (1998)."
www.royalholloway.ac.uk/geography/documents/pdf/currentstudents/fieldtrip/spain-eu.pdf
I agree it has enabled easier trade within the EU but there are costs to this (especially for the UK as I mentioned). 56% youth unemployment and mass demonstrations across Spain are signs of the growing discontent. Who do you blame this on if not the EU? I personally think the Euro project is primarily to fault.
You really need to check your facts on EU immigration - over 4 million net came to the UK between 1997-2010 (government figures - google it!) The question is both demand and supply and at what rate we should set this as. Would you rather uncontrolled EU immigration and building upon greenbelt land so as to cater for demand? It is wrong to suggest EU immigration has a 'marginal effect' when the letting industry (which I work in) have been documenting the growing problem for almost a decade! Why else do you think house prices remain near record high levels comparable to wages? House building has been neglected unquestionably, but the rate of recent EU immigration has caused serious structural and economic consequences within the housing market, especially for our aspiring home-owners and the young who either rent or live at home.
I don't know about UKIP policies but it worries me that politicians like Nick Clegg want to stifle the EU debate. Labour and the Conservatives need to open the debate up and add some weight to the debate.