Economics

Debt is not Europe’s only problem, says Morten Olsen. In Spain, it’s a lack of competitiveness. It can’t devalue, so it has to take other measures to become more competitive. Half of the newly unemployed worked in the construction industry, and now nearly half of those out of work are long-term unemployed. This is a serious problem. Only 13 percent of Spanish workers are in part-time work, compared with 40 percent in the Netherlands. Changing the social security system to encourage part-time employment would at least reduce the harmful effects of long-term unemployment.