In order to reduce unemployment, the Spanish government would have the option to increase government spending and face stiff penalties, or do nothing and blame the country s economic plight on the economic union. Both options could be disastrous for the success of the union. An alternative, which would be better for the countries and the economic union, would be if the unemployed were to follow the jobs. Employment and unemployment vary considerably from country to country. If the unemployed could move to the areas where labor is in increased demand, both the individual and the country would benefit.
Questions Describe the different types of unemployment.
Source Helene Cooper, European Jobless Remain Loath to Move, Posing Pitfall for EMU, The Wall Street Journal, June 24,1998.