ABSTRACT

The effects of the international financial crisis that started in the US in 2007 have added to and multiplied the problems stemming from Spain's already existing specific economic imbalances, among them the construction bubble which had underpinned Spain's previous strong economic growth. The international crisis accelerated the bursting of the bubble with devastating effects in destroying jobs and increasing unemployment and the risk of poverty. Moreover, even if many people's problems started with the initial crisis, the austerity policies adopted to address the financial imbalances are adding to rather than resolving these difficulties.