THE STATE OF THE EUROPEAN UNION 2012 www.falternativas.org www.fes-madrid.org ISBN 978-84-92848-56-0 9 788492 848560 The EU27 economic indicators for the end of 2012 therefore painted a bleak picture: soaring unemployment(10.8 per cent of the active population), a slip back into re­cession(–0.3 per cent GDP) and a growing public debt ratio(85 per cent). The scenario for the Eurozone was worse and even more so for countries such as Italy, Portugal and Spain. This drama, furthermore, was unfolding in a rather fragile inter­national context; nonetheless, since the overall global situation was generally posi­tive, we cannot lay the blame there. The inference to be drawn is that the one-dimensional policy of austerity and deep cuts in welfare spending decreed by the EU, combined with the avoidance of any stimulus measure, has proved to be an outright failure. No signs on the horizon en­courage any optimism that the austerity policy, if continued, will improve matters. This is hardly surprising, as to a large extent, this very policy is the root cause of the negative figures. THE STATE OF THE EUROPEAN UNION The failure of austerity 2012 Fundación Alternativas Created in 1997 to serve as a channel for political, social and cultural research and advocacy in Spain and Europe, the Fun­dación Alternativas has become a vital forum for the exchange of ideas and policy development. The foundation addresses a broad range of issues through its Laboratory, Observatory on Culture and Communication, Progress Research programme and Observatory on Foreign Policy(OPEX), which focuses on foreign policy at both European and international arenas. The core objective of this organisation, which works hand in hand with the most innovative and forward-looking thinkers in Spanish society today, has always been, and continues to be, rigorous analysis and the development of new ideas for today’s increas­ingly globalised world. Through its programmes that focus on pub­lic policy issues from European and international viewpoints as well as a domestic perspective, the foundation offers ideas for decision-makers in every sphere of society, from government lead­ers and political parties to a wide range of other economic and social stakeholders. The professional policy analysts and academics who collaborate through the Foundación Alternativas are commited to making a solid and lasting contribution to social, economic, cultural and political progress in Spain and Europe. Friedrich-Ebert-Stiftung The Friedrich-Ebert-Stiftung(FES) is an independent non-govern­mental organisation, founded in 1925 and named after the first president of democratic Germany. Following in the footsteps of the early struggle for democracy in Germany, FES has continued its mission to fight social and political injustice in a spirit of pluralism and participatory democracy. With offices and activities in more than 100 countries, FES is dedicated to promoting the values of social democracy. FES en­gages in education programmes to promote popular democratic engagement. FES coordinates a large research network and is a major publisher in the fields of politics, history and social affairs. In this connection, FES strives to contribute to the development of progressive ideas and scholarly analysis of central policy areas. FES is part of a worldwide network of German non-profit, political foundations. In cooperation with an extensive network of partners, FES offers one of the biggest non-governmental global infrastruc­tures for democracy promotion and international dialogue on cen­tral topics of international politics.