New report says 25% of Spain’s population lives below poverty line

A recent report released by a Spanish institution says 25 percent of Spain’s population lives below poverty line, 2 percent higher than last year, as the country grapples with the highest rate of impoverishment among European states.

According to an annual report issued by the Spanish Economic and Social Council (CES), lack of jobs for young people is expected to increase poverty and social inequality for several years to come, warning that further welfare and education cuts could have dire consequences for future generations.

“We know that there are countries where two or three young generations have been failed by their education system and there are countries too where young people have never been given a chance to get into the workforce,” said Fernando Valdes of the CES.

The reports also added that the index of deprivation from social services is high among the Spanish population.

The number of jobless people in Spain has hit a record high of 24 percent, with a 50-percent youth unemployment rate, it added.

Battered by the global financial downturn, the Spanish economy collapsed into recession in the second half of 2008, taking with it millions of jobs.

The worsening eurozone debt crisis has raised Spain’s financing costs amid concerns that the country might have to seek a European Union bailout, like Greece.