Bailing out Spain's green economy
Image via WikipediaCNBC:
The biggest bailout the European Union will have to do if it comes to it will be Spain and it is worrying that there is not a set mechanism on how to go about it, Cornelia Meyer, CEO & Chairman, MRL Corporation, told CNBC Monday.It is important to remember how Spain got in this fix. They invested heavily in "green energy" and then made further investments in subsidies to consumers to use the inefficient energy. It bankrupted them and the so called green jobs were a mirage. It is a mistake on a grand scale that Obama and the Democrats had hoped to copy. The new GOP House should save us from that debacle.
At the weekend, euro zone financial ministers and Irish officials agreed on a bailout of under 100 billion euros ($137 billion) for Ireland, sending stocks in Europe and the euro higher, as investors breathed a sigh of relief.
But the next in line for European Union and International Monetary Fund money may be Portugal, and then Spain, analysts said.
She predicted that a Spanish bailout would likely cost up to 500 billion euros; but there is no "real mechanism" to deal with it, Meyer added.