Spain is located in the south-western part of Europe taking just more than four-fifths of the Iberian peninsula. Spain also includes the Balearic Islands in the Mediterranean Sea, the Canary Islands in the Atlantic Ocean and some area in Morocco. It is located between both Portugal and France. Spain is surrounded by beautiful beaches and mountaintops. Spain is often thought of as a land that carries an image of pride and privilege. But aside from its impressionable image, it is a struggling country. It is a place where pesetas (currency in Spain) can often be scarce and where the government fights to keep financial steadiness. Spain has given great effort to help support the people of the country. They have done this by using their money to create toll-free highways, fighting for worker's rights, deflate the public deficit, and increase wages. However, Spain is still a flailing capitalist economy that is far behind the leading West European countries' economies even though in the past decade it has made incredible strides toward progressing. Spain has its work cut out for them in the near future in order to stay close with the other West European economies. Although the inflation rate is low, interests rates are low as well. Also the government has continued to support privatization, liberalization and deregulation of the economy while introducing new tax reforms. Spain has a 20% unemployment rate. That is the highest unemployment rate in the EU. Spain's diverse capitalist economy will be faced with difficult challenges in the next few years with monetary and other economic policies, and will need a stable government to become more competitive with an already ahead Europe economy. However, Spain has made a great deal of progress, considering its wavering economic past. World War II was the beginning of the distance between Spain and the rest of the European nations. As a result of Spain never entering into the war, the country never received the benefits from the European recovery plans, keeping it in a situation of complete isolation.