Rajoy Says Spain Emerging From 2-Year Recession

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Sept. 25 (Bloomberg) -- On today's "Global Outlook," Matt Miller reports on Spain's economic recovery. He speaks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

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The spanish prime minister spoke with sarah i sent earlier today.

He was talking about his positive outlook for his country here cannot believe we are saying positive and spain in the same sentence.

Matt miller joins us to talk about it.

It took me by surprise as.

She came into the noon meeting today peerage you told her she just said done with the prime minister.

He was saying how last year all of the big leaders in europe were trying to push them to take a ale out.

We all recall everyone's question was, why is it taking so long?

It is an eventuality and he will have to do it anyway.

But he did not, of course.

Now that he is back here in new york, he said his outlook is brighter.

He is seeing growth in gdp or getting there with growing exports.

The gdp chart still does not look pretty.

But it looks better than in the past.

He is seeing lower our link costs, helping spain to lower its budget deficit relative to gdp -- he is seeing lower borrowing costs.

Quite now it is down -- now it is down arrow 4%. to what we would consider terrifying levels for their bond yields.

The question i asked her, which i think everyone would ask when they take about spain's economy and hear the word recovery in the same sentence, is unemployment.

It still looks awful.

Almost global warming style.

26% unemployment.

It is hard to fathom what it is like when one in four people is out of work.

Exactly.

Youth unemployment is a much worse story.

That is much more dangerous for the economy.

Is there any reason beyond the debt crisis as to why this unemployment rate has not come down more significantly?

Interesting you should ask.

A bloomberg news story just went out on our website that points out that they took some pains to reform their labor laws last year.

There were a lot of protests about that.

The labor laws, they said may be keeping people out of work.

They are trying to put these kind of labor laws into effect in this country, but they are taking them down there to try to get people back to work.

There has to be a certain window.

Similar to what we have seen in germany.

Exactly.

He says that he needs to reform those laws more, he will.

He sounded fairly optimistic.

In spain, the debate is not if spain will have a bailout or if the euro has a future or not.

Now the debate is when is spain going to recover, and how strong will that recovery be?

Definitely an incredibly interesting interview.

I look forward to waking up early and watching that tomorrow on "bloomberg surveillance." fascinating perspective.

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