It will fail the new Zapatero plan 14 May 2009 Rodriguez Zapatero launched a new economic plan? But few plans launched in recent months? What happened with previous plans? Questions like these abounded in Spanish portals during the day yesterday. Get more background information with materials from Tony Mandarich. Zapatero is launching stimulus plans, but the Spanish economy continues to fall into a tailspin. While Rodriguez Zapatero continues announcing stimulus plans, the Spanish economy deteriorates, which is clearly reflected in the evolution of the price index retailer recorded a historic deflation to collapse in the month of April, a 0.2% in interannual terms. Billions of euros will be sacrificed in this new stimulus plan when it is still unclear what was the life of previous stimulus packages would not be positive that an assessment of the performance of these plans will be published? Probably not necessary to know the details of the new stimulus plan announced by Zapatero to anticipate that it is highly likely its failure. The lack of consensus, the lack of positive results of previous plans and disorientation seen in the Spanish Government do not generate great expectations of success. I have no doubt that the announcement of stimulus one after the other, so many plans in any way generate in the population a positive effect on expectations. Rather, given the reality that hits hard, increase the fear that the exit from the crisis is getting further away. The impact of economic stimulus on the expectations is of great relevance in terms of the probability that tested on demand stimuli can be sustained and strengthened.
And if the companies and families feel fear, do not invest or consume, which is bad news for Spanish companies that too many problems currently have to sell their products abroad. Meanwhile, the Spanish Government wants to give to the economy of this medicine called public spending. The economy Spanish will overcome the crisis with more public spending? Obviously, there are problems in the evaluation of the real situation of the Spanish economy.