Spanish Banking Crisis In 2008

Spanish banking crisis in 2008

The economic-financial crisis had an impact on the productive apparatus of Spain, where GDP, employment and the number of hours worked significantly from 2008, affecting all the segments of the population, regions and economic sectors, especially those that are those that are those that are especially those that are especially those of They were characterized by their constant levels of productivity such as industrial and energy. That is why the evolution of GDP and salary costs have not had the same impact on employment in various productive sectors, considering as an element that affected the differences in economic activities and in balance in the levels of development.

Costs in the public sector

The economic crisis has generated economic costs in the public sector, which have promoted more than 29 billion euros for 2013, which means a decrease of -5.9 % compared to 2009, among the measures assumed to reduce The deficit in the public sector is the reduction of non -financial expenses, investments cuts, including research and decreased salaried remuneration that decreased by 8%. Additionally, taxes and cuts were established in public expenses, these cuts were intended for housing and community services, culture, environmental protection, public services such as education and health.

In the case of education, spending was reduced from 49.7 billion euros in 2009 to 42.4 billion in 2013, which is equivalent to 14% employment and a reduction of 22.

3 thousand people. Regarding Health the cuts reached a 9.9 billion euro, which means 13.4%, representing in employment a decrease of 13.9 thousand people between 2008-2013.

According to the above, both the education and health sectors were the ones that had the greatest budgetary decrease, among the measures adopted is the increase in the number of students per classroom, as well as the teaching hours per teacher and the university registration, and On the other hand, the number of scholarships were decreased, the coverage for personnel casualties, school aids such as transport and dining room. In reference to public health, more restrictions were imposed for the assignment of prescriptions of certain medications, the pharmaceutical co -payment was imposed, some hospital services were closed, all this accompanied by the increase in the waiting lists. Taking into account that in the autonomous communities the main services offered are education and health, being the ones that suffered the greatest cuts.

Costs in the private sector

With respect to the effects generated by the crisis in the private sector, they have had great impact, which, like the public sector, was characterized by the unemployment and precariousness of employment, as well as salary inequalities, which increased the difference Between income and wealth between social classes, effects that are present in workers who act on their own, such as those who were subject to collective agreements. Without a doubt, with the crisis the level of poverty increased considerably.

According to Fernández (2016), private sector costs were basically reflected in the salary structure, as can be seen in the following table, the salary difference between 2008 and 2012 was not significant, the SMI has increased 6.9% , like the average and medium salary although in lower proportions, maintaining the same salary between these years that was 15.500 euros. In relation to the salary structure, as seen in the following table, it has presented a decrease, this is because the number of workers that charged up to twice the minimum interprofessional salary has been reduced by 9.9% between the 2008-2012, the same goes for other structures, where the difference from one year to another has increased exceeding up to 7 times the SM. It is important to note that in 2012, 12% of the workers who act on their own had salaries that did not reach the SMI, which compared to 2008 this sector represented 8.8%. This is a reflection that poverty has increased among employed, in addition to increasing salary differences by sex, where women for 2012 received an average salary of 76.1% with respect to men, which for 2008 was Of 78.1%it can be indicated that the most affected workers sector, not to mention the unemployed, are those who perceived remuneration lower than the salary scale. However, there were workers who were not so affected with the crisis, as those who were in higher strata and that their salary exceeded the SMI, were usually those who worked in multinationals or Ibex companies. 

It is worth noting another affected sector was that related to the labor, which at the beginning of everything reached very high levels, and then falling during the economic crisis, generating with it the disruption of jobs in a significant way, within the private sector there were losses of jobs that They reached 568.000 positions, which represented more than 30% of lost jobs, an effect that also presented itself in the industrial sector losing more than 520.000 jobs, assuming 28 % of the total jobs. This undoubtedly demonstrates that the crisis reached private sectors that were considered historically productive, seriously weakening the country’s economic model.

On the other hand, there are private services, directly affecting the jobs in various regions of the country such as the Valencian Community where 112 was reduced.800 of jobs, Catalonia with losses of 111.700 jobs, Andalusia with 87.200, the Canary Islands reported 68.600 and Madrid 59.300 jobs. 

From the above, it is summarized that the common factor of the crisis in all sectors was the fall in employment that affected all productive areas, mainly impacting on construction and private services, as well as those destined for sale and industry, consequence that impacted on regions of great importance for their level of economic development such as Catalonia, Community Valenciana and Madrid, among others. Also sectors such as manufacturing, agrarian and industrial also presented significant losses during this period.