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The value of the pound in relation to the euro could be an argument against doing business with Spain.
Concerns about the economic stability of Spain and the viability of doing business in Spain in the near future are even more pressing concerns: recently, the European Community has had to undertake extraordinary measures to save the troubled economy of Greece from defaulting on its debt obligations. Spain's economy is also fragile. Given the role of the Spanish government in the energy industry, and the long-standing partnership that would exist between SSE and any agreement resulting in an expansion effort into Spain, it is essential to have a clear-headed view of the nation's likely economic future and stability when negotiating an agreement (Sullivan 1999).
Said Nobel-Prize winner of economics Paul Krugman: "for a number of years Spain could pay its way within the eurozone by selling assets, mainly real estate, as the inflow of capital financed a huge housing boom. That allowed Spanish wages to rise relative to those in other European countries. But now the housing boom has gone bust, and the big inflows of money are over. So Spain needs to compete in producing real stuff, such as manufactured goods. And it won't be able to do that unless it has a major gain in productivity through wage reductions" (Krugman 2010). The Spanish public, like the Greek public, has been highly resistant to...
(2010). Scottish and Southern Energy. Retrieved March 16, 2010 at http://www.scottish-southern.co.uk/SSEInternet/index.aspx?rightColHeader=4&id=272&TierSlicer1_TSMenuTargetID=56&TierSlicer1_TSMenuTargetType=4&TierSlicer1_TSMenuID=6
British Labour MEP relaunches euro debate. (2009, 13 January). Eurobusiness.
Retrieved March 16, 2010 at http://www.eubusiness.com/news-eu/1231866126.22
Krugman, Paul. (2010). 10 questions. Spain Economy Watch. Retrieved March 16, 2010 at http://spaineconomy.blogspot.com/2010/01/ten-new-year-questions-for-paul-krugman.html
Spain: Infrastructure, power, and communications. (2010). Encyclopedia of the nations.
Retrieved March 16, 2010 at http://www.nationsencyclopedia.com/economies/Europe/Spain-INFRASTRUCTURE-POWER-and-COMMUNICATIONS.html
Sullivan, J. (1999). What is infrastructure? In Sullivan, J., Exploring international business environments. Boston, MA: Pearson Custom Publishing
References
About Us. (2010). Scottish and Southern Energy. Retrieved March 16, 2010 at http://www.scottish-southern.co.uk/SSEInternet/index.aspx?rightColHeader=4&id=272&TierSlicer1_TSMenuTargetID=56&TierSlicer1_TSMenuTargetType=4&TierSlicer1_TSMenuID=6
British Labour MEP relaunches euro debate. (2009, 13 January). Eurobusiness.
Retrieved March 16, 2010 at http://www.eubusiness.com/news-eu/1231866126.22
Krugman, Paul. (2010). 10 questions. Spain Economy Watch. Retrieved March 16, 2010 at http://spaineconomy.blogspot.com/2010/01/ten-new-year-questions-for-paul-krugman.html
Retrieved March 16, 2010 at http://www.nationsencyclopedia.com/economies/Europe/Spain-INFRASTRUCTURE-POWER-and-COMMUNICATIONS.html
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