How we will affect the rise in rates in Spain. The perfect storm 2.

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The European Central Bank has already raised interest rates to 1.25%. This ascent is done to control inflation in the euro zone, because of the foreseeable increase in the oil and all kinds of raw materials. This rise in rates is to the CPI to stay below 2%.

However, that in some countries will be an advantage, it is in Spain may be the definitive "Jake Mate" for the economy of private individuals. How we affect the rise in the rates?

Mortgages rise.

First of all, due to the rise in the euribor, it is estimated that the average mortgage will rise about 600€ per year. For some families, dealing with your mortgage with the precarious nature of their work or simply difficult to obtain employment, is like a dream. Now, the difficulty increases even more to deal with your mortgage, so it must adhere to the savings. Save is to reduce consumption, and if we lower the consumption once again, we harm the next link in the economic chain, which is the small and medium enterprises.

Less purchasing power.

With the price of the money to 1.25% and 3.6% inflation reduces the purchasing power of the Spaniards, by what you save will cost much more. On the other hand, the European Central Bank expected to continue raising rates. This will cause to the shopping basket and fill the fuel tank becomes a juggling act for many.

Unemployment goes up.

Rise of mortgage, lowering consumption and need to save even more, they are three factors that also contract investment and creation of new enterprises. In addition, SMEs will be affected, so some will closed and the rest prescindirán to recruit more staff. This is the ideal situation to increase unemployment in Spain. We return to the perfect storm in Spain.

And some you ask why the European Central Bank has raised rates if the economic situation is going to be injured. Therefore, the ECB has raised rates because in the zone euro has decreased the level of unemployment and have forgotten that we continue with a level of unemployment of 20% with upward trend due to this rise in rates in Spain.

In a nutshell: the European Union has forgotten Spain. Tweet