Spain in the banking crisis
Spain is to receive billions from the euro bailout fund to get its ailing banks back on their feet, although it won't have to fulfil comprehensive austerity requirements. How long can Europe afford these major rescue operations?
WOZ - Die Wochenzeitung - Switzerland | Thursday, 7. February 2013
Spain's Prime Minister Mariano Rajoy is under suspicion of corruption, adding one more to the list of over 300 Spanish politicians currently under investigation for corruption and abuse of office. Such crimes have been dealt with too leniently in the past, and in these times of harsh austerity measures the patience of the Spanish people is quite rightly at an end, the left-leaning weekly paper WOZ writes: » more
Spain's Prime Minister Mariano Rajoy is under suspicion of corruption, adding one more to the list of over 300 Spanish politicians currently under investigation for corruption and abuse of office. Such crimes have been dealt with too leniently in the past, and in these times of harsh austerity measures the patience of the Spanish people is quite rightly at an end, the left-leaning weekly paper WOZ writes: "If the system of give and take has survived for so long, it's because politicians had too little to fear. Violations of the party financing law fall under the statute of limitations after four years, but the audit reports of the Court of Accounts - whose funds have been cut in the current budget - take five years on average. And if it does come to a criminal conviction, the chances for a pardon are not at all bad. ... Thousands of Spaniards are now calling for new elections. But Prime Minister Rajoy will do all he can to thwart such plans. According to the most recent surveys, his party would receive only 24 percent of the vote, compared with 45 percent in November 2011."
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More from the press review on the subject » Tax Policy, » Elections, » Justice, » Spain
All available articles from » Dorothea Wuhrer
Expansión - Spain | Friday, 25. January 2013
Spain's statistics institute presented new record unemployment figures for 2012 on Thursday, showing that almost six million people are without work in the country. Further government reforms and renunciation of pay by employees are the only way out of the crisis, the conservative business paper Expansión argues: » more
Spain's statistics institute presented new record unemployment figures for 2012 on Thursday, showing that almost six million people are without work in the country. Further government reforms and renunciation of pay by employees are the only way out of the crisis, the conservative business paper Expansión argues: "The government must promote growth through structural reforms, and companies and employees must make the most of the flexibility the labour market reform has given them. At the negotiating table, keeping and creating jobs must always be the top priority, in exchange for more flexibility in the organisation of work, whether it means freezing and reducing salaries or modifying shifts, working times or work mobility. The fight against unemployment requires action from the government, the regions, the parties, the entrepreneurs and all society."
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More from the press review on the subject » Economic Policy, » Labour, » Spain
El País - Spain | Wednesday, 23. January 2013
In a move aimed at highlighting Spain's lack of representation at EU institutions, the Spanish Minister for Economic Affairs, Luis de Guindos, abstained from voting for Jeroen Dijsselbloem to be appointed as the new leader of the Euro Group on Monday. But this isolated act of protest won't achieve anything, the left-liberal daily El País fears: » more
In a move aimed at highlighting Spain's lack of representation at EU institutions, the Spanish Minister for Economic Affairs, Luis de Guindos, abstained from voting for Jeroen Dijsselbloem to be appointed as the new leader of the Euro Group on Monday. But this isolated act of protest won't achieve anything, the left-liberal daily El País fears: "The abstention of Spain's economics minister was supposed to sound an alarm in the EU. But it wasn't very effective because the European partners at whom this protest against Spain's lack of representation was directed barely noticed this isolated gesture. .. With its deep recession, its request for an EU bailout to save its financial system and the many doubts still hovering over its immediate economic future, Spain doesn't have the best cards in its hand in the diplomatic game right now. But the quality of the players only becomes truly apparent when they have no trump cards. Therefore the Spanish government would do well now to stop complaining and examine its own mistakes and shortcomings so it can find allies and get out of this situation in Europe."
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More from the press review on the subject » International Relations, » EU Policy, » Spain, » Europe
La Vanguardia - Spain | Monday, 21. January 2013
Japanese carmaker Nissan announced on Friday that it will not produce its new model in Barcelona, as planned, because the trade unions there have rejected tougher working conditions. The unions must soften their stance for the sake of saving jobs, the liberal-conservative daily La Vanguardia urges: » more
Japanese carmaker Nissan announced on Friday that it will not produce its new model in Barcelona, as planned, because the trade unions there have rejected tougher working conditions. The unions must soften their stance for the sake of saving jobs, the liberal-conservative daily La Vanguardia urges: "The initial failure of the negotiations with the Nissan management in Barcelona was a grave mistake. The unions at first rejected the company's proposals to increase the effective working times without a pay rise. Naturally no one is happy about making such a sacrifice, but many employees all over the country are having to put up with it to keep their jobs. ... The trade union leaders and the work force at Nissan did well to rethink their position and modify their initial demands to try and persuade the multinational to produce the new model in Barcelona after all. There is more at stake here than just the contract for a new car. It's about maintaining the basis for the country's productivity."
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More from the press review on the subject » Corporations, » Unions, » Spain
Cinco Días - Spain | Wednesday, 9. January 2013
Spain government plans to get through 2013 without becoming dependent on the European bailout fund, the Ministry of Finance announced on Tuesday. The improved financial situation in the country is above all thanks to the help of the ECB, the left-liberal business paper Cinco Días points out: » more
Spain government plans to get through 2013 without becoming dependent on the European bailout fund, the Ministry of Finance announced on Tuesday. The improved financial situation in the country is above all thanks to the help of the ECB, the left-liberal business paper Cinco Días points out: "Spain's financial situation began to improve six months ago, with the ECB's announcement that it would purchase the bonds of troubled countries if necessary. This move by Mario Draghi was a turning point, changed the attitude of the markets and triggered a wave of purchases of Spanish public debt by foreign investors. The easing of pressure on the bond was also favoured by the expectation that Spain would request help from Europe - a possibility regarding which the government has never made a clear statement. This is now creating reasonable doubts about how the markets will react to the government's ruling out a request for a bailout."
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More from the press review on the subject » Economic Policy, » Federalism, » Spain, » Europe
Cinco Días - Spain | Friday, 28. December 2012
For the Spaniards the economic crisis has worsened in 2012. The conservative People's Party, which has been in power for just over a year, is increasing the potential for conflict in society, the left-liberal business paper Cinco Días warns: » more
For the Spaniards the economic crisis has worsened in 2012. The conservative People's Party, which has been in power for just over a year, is increasing the potential for conflict in society, the left-liberal business paper Cinco Días warns: "Spain has always been a country with relatively high structural unemployment and low productivity levels, so that despite salaries that are comparatively low in a European comparison its products were hardly competitive. Faced with the international economic crisis and without the possibility of devaluing its currency, Spain has reacted with the simplest response: it cut wages, raised all the taxes it could and introduced an austerity policy that entails heavy curtailments on civil rights owing to the ideology of this government. ... If the government continues with its absolutist and arrogant attitude it will only fuel the social tensions and turn the protests into a permanent situation for which it alone will be responsible."
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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Social affairs, » Spain
Cinco Días - Spain | Tuesday, 4. December 2012
The Spanish government's deadline for tax evaders to voluntarily declare any illicit funds they have in foreign accounts ran out at the end of November. The measure enabled Spain to retrieve 12 billion euros, as the government explained on Monday. Now the state must take tough action against those who failed to come clean about evading tax, the left-liberal business paper Cinco Días demands: » more
The Spanish government's deadline for tax evaders to voluntarily declare any illicit funds they have in foreign accounts ran out at the end of November. The measure enabled Spain to retrieve 12 billion euros, as the government explained on Monday. Now the state must take tough action against those who failed to come clean about evading tax, the left-liberal business paper Cinco Días demands: "In addition to the 12 billion euros that have resurfaced (almost all of which was declared in the last few days before the deadline) the tax authorities now have a clearer idea of the dimensions of the large-scale tax evasion - perpetrated by some of the biggest companies in the country. Apart from monitoring what happens with the uncovered wealth now the search for as yet uncovered sums should be intensified. To this end all the instruments should be applied that the new law against tax evasion allows."
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More from the press review on the subject » Corporations, » Tax Policy, » Crime, » Spain
Gazeta Wyborcza - Poland | Tuesday, 4. December 2012
Spain applied for 39.5 billion euros from the ESM bailout mechanism on Monday, to get its stricken banks back on their feet. Przemysław Kwiecień, chief economist of the Polish investment company XTB, takes a relaxed view of the move in the liberal daily Gazeta Wyborcza: » more
Spain applied for 39.5 billion euros from the ESM bailout mechanism on Monday, to get its stricken banks back on their feet. Przemysław Kwiecień, chief economist of the Polish investment company XTB, takes a relaxed view of the move in the liberal daily Gazeta Wyborcza: "Everything had already been discussed and agreed. Therefore one can hardly talk of a surprise move. Nor is this decision of any major importance. Far more important is the question of when the Spanish government will ask for help for itself and not just for the banks. But it doesn't really look like this will happen at the moment. All we know is that this would be a formal condition for the European Central Bank to buy an unlimited amount of [Spanish] bonds. But this is not very likely. Spain would only opt for such a measure if it was forced to - for example if the interest rates on its bonds rose to a very high level. However in recent weeks they have fallen. … The market is being rather indulgent with Spain at present."
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More from the press review on the subject » EU Policy, » Fiscal Policy, » Poland
All available articles from » Przemysław Kwiecień
El Mundo - Spain | Thursday, 29. November 2012
The EU Commission on Wednesday approved restructuring plans for four Spanish banks, paving the way for the release of the funding from the ESM bailout mechanism promised last July. This is good news for the Spanish economy, the conservative daily El Mundo writes: » more
The EU Commission on Wednesday approved restructuring plans for four Spanish banks, paving the way for the release of the funding from the ESM bailout mechanism promised last July. This is good news for the Spanish economy, the conservative daily El Mundo writes: "If the lack of loans is one of the greatest obstacles to economic recovery at present, this aid for the financial sector - together with the creation of the 'bad' bank Sareb - could help put an end to the great uncertainty regarding Spain's economy. Mariano Rajoy has repeatedly said in recent times that growth would be impossible without credit flow. ... The implementation of the bank bailout is a key step in restructuring a sector that is crucial for recovery. The plan also went down well with the markets, as the fact that yesterday the risk premiums dropped below 400 points for the first time since October 23 shows."
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More from the press review on the subject » EU Policy, » Financial Markets, » Banks, » Spain, » Europe
Expansión - Spain | Tuesday, 20. November 2012
Spain's Economics Ministry on Monday presented a plan that gives non-EU citizens the right to residency in Spain if they buy real estate worth more than 160,000 euros. The conservative business paper Expansión approves of the idea but notes that the plans are still half-baked: » more
Spain's Economics Ministry on Monday presented a plan that gives non-EU citizens the right to residency in Spain if they buy real estate worth more than 160,000 euros. The conservative business paper Expansión approves of the idea but notes that the plans are still half-baked: "The proposals of Trade Secretary Jaime García-Legaz come across as somewhat improvised. The Socialists and several NGOs promptly described the idea as 'mercantilist' and 'discriminatory' because they say it makes the obtaining of a residency permit contingent on the number of zeros immigrants have on their bank account. But the criticism of the opposition is premature, even if the government's plan leaves many issues open. The sum proposed by García-Legaz could attract highly qualified immigrants who could in turn create new jobs in the country. This is what countries like the UK and the US do, stipulating even higher minimum sums."
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More from the press review on the subject » Migration, » Economic Policy, » Spain
Corriere della Sera - Italy | Monday, 19. November 2012
Spain has so far avoided applying for an EU bailout because it fears the uncertainties of the austerity terms this involves. But there is now no reason to continue hesitating, the liberal-conservative daily Corriere della Sera points out: » more
Spain has so far avoided applying for an EU bailout because it fears the uncertainties of the austerity terms this involves. But there is now no reason to continue hesitating, the liberal-conservative daily Corriere della Sera points out: "The new bailout date has been fixed for the end of November. And perhaps this time it will work out. But this is by no means certain; after all, all the previous deadlines were missed. Up to now [Prime Minister] Rajoy has been paralysed by fear of the terms imposed for a bailout. The example of Greece is very much with him. ... But things are going on behind the scenes. Last Wednesday EU currency commissioner Olli Rehn announced that Spain wouldn't have to implement further austerity measures even if it does not fulfil the Stability Pact terms. So it doesn't matter if the deficit amounts to eight percent of the GDP: the EU Commission will prevent Germany from demanding impossible sacrifices. Madrid can forget its fears and seek a bailout without hesitation."
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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Spain
All available articles from » Federico Fubini
La Razón - Spain | Friday, 16. November 2012
The Spanish government passed a moratorium on Thursday providing two-year protection for needy families - low-income families or those with many children - against forced evictions pursuant to mortgage payment defaults. While it is necessary to support needy families the stability of the banks must not be jeopardised, the conservative daily La Razón warns: » more
The Spanish government passed a moratorium on Thursday providing two-year protection for needy families - low-income families or those with many children - against forced evictions pursuant to mortgage payment defaults. While it is necessary to support needy families the stability of the banks must not be jeopardised, the conservative daily La Razón warns: "In principle the moratorium seems well suited to provide a solution for families in dire straits. Nevertheless we must not lose sight of the bigger issue and make hasty decisions in an area where equilibrium and planning dependability are vital. Because such a move could cause collateral damage that would be very difficult to counteract. The financial system for granting mortgages is based on sound legal security. ... It is important to protect destitute households, yes. But it is just as important to preserve the rights of all parties and maintain the equilibrium of the mortgage system."
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More from the press review on the subject » Social affairs, » Banks, » Spain
El Mundo - Spain | Monday, 12. November 2012
A 53-year-old woman in the Basque town of Barakaldo died on Friday when she threw herself out of the window of her apartment as she was being evicted. Banks in Spain are putting a growing number of people on the street because they can't pay their mortgages. The police trade union SUP has now promised officers who don't want to take part in evictions for reasons of conscience legal and moral support. This goes too far, the conservative daily El Mundo writes: » more
A 53-year-old woman in the Basque town of Barakaldo died on Friday when she threw herself out of the window of her apartment as she was being evicted. Banks in Spain are putting a growing number of people on the street because they can't pay their mortgages. The police trade union SUP has now promised officers who don't want to take part in evictions for reasons of conscience legal and moral support. This goes too far, the conservative daily El Mundo writes: "It is true that throwing someone out of their own four walls is an extreme situation that no one wants to witness. But it is the job of police officers to obey the commands of their superiors if they are based on judicial orders. A trade union must not support the refusal to obey orders. When officers are encouraged not to carry out orders this clearly undermines the rule of law. The SUP should rethink its absurd promise and retract it."
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More from the press review on the subject » Domestic Policy, » Social affairs, » Banks, » Spain
El Mundo - Spain | Tuesday, 6. November 2012
In Spain, the number of unemployed has reached a record 4.8 million, the Spanish Ministry of Employment announced on Monday. This quashes any hope of the country reaching its public deficit target, the conservative daily El Mundo points out: » more
In Spain, the number of unemployed has reached a record 4.8 million, the Spanish Ministry of Employment announced on Monday. This quashes any hope of the country reaching its public deficit target, the conservative daily El Mundo points out: "The fact that the number of people who are registered as unemployed rose by a further 128,000 in October is a clear sign that Spain's economy is far from recovering. The statistics show that unemployment has doubled this year: 620,000 jobs gone within the past 12 months, compared to 305,000 in the same period last year. Nor is there any indication that this trend will change in the final quarter, meaning that the National Statistics Institute's jobless figures will probably climb to six million by the end of the year. An aggravating factor is that as unemployment increases, so do the costs of unemployment benefit - 7.1 percent more, whereas the government had estimated a 5.5 percent drop in costs. This makes the challenge of lowering the public deficit to the targeted amount even more difficult."
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More from the press review on the subject » Fiscal Policy, » Labour, » Spain
El País - Spain | Thursday, 25. October 2012
Despite its high unemployment rate and many immigrants there is no sign of growing xenophobia in Spain, political scientist José Ignacio Torreblanca writes on his blog in the left-liberal daily El País: » more
Despite its high unemployment rate and many immigrants there is no sign of growing xenophobia in Spain, political scientist José Ignacio Torreblanca writes on his blog in the left-liberal daily El País: "It is noteworthy in a comparative context that despite the social devastation and unemployment it has caused, this crisis has not generated xenophobia as it has in other European countries. From Denmark to the Netherlands passing by Finland, Germany, France, Italy and the UK, it has divided the traditional parties and strengthened the xenophobic parties that aim to foment and capitalise on anti-immigration sentiment. In Spain, despite a spectacular rise in immigration in the past decade and an unemployment rate of 25 percent, no one is campaigning for votes on a 'Spaniards first' or 'Buy Spanish' platform, apart from a few exceptions like the municipality of Badalona [where a local politician of the People's Party tried to win votes with slogans against Romanian immigrants] which only serve to confirm the rule. "
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More from the press review on the subject » Domestic Policy, » Migration, » Integration, » Spain
All available articles from » José Ignacio Torreblanca
La Razón - Spain | Monday, 22. October 2012
In regional elections held on Sunday in Galicia the ruling People's Party was able to consolidate its absolute majority. This is a sign of support for the reform and austerity policy of Mariano Rajoy's ruling PP in Madrid, the conservative daily La Razón concludes: » more
In regional elections held on Sunday in Galicia the ruling People's Party was able to consolidate its absolute majority. This is a sign of support for the reform and austerity policy of Mariano Rajoy's ruling PP in Madrid, the conservative daily La Razón concludes: "The election result in Galicia is a clear show of support for Mariano Rajoy's government, and conversely a major blow to the Socialists led by Pérez Rubalcaba [the opposition leader in Madrid]. ... Beyond regional politics, this resounding victory for Núñez Feijóo [the Galician prime minister], which further strengthens his absolute majority in the Galician parliament was also a referendum on Rajoy's policies at a time when they are being most intensely criticised by the parties of the left. Not for nothing had the Socialists demanded in the campaign that the elections be used as a protest vote against the PP government. And this strategy was supported by the UGT and the CCOO [trade unions] when they called a general strike [for the 14 November] last Wednesday."
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More from the press review on the subject » Domestic Policy, » Elections, » Spain
Financial Times Deutschland - Germany | Tuesday, 16. October 2012
The desire for independence cannot provide an answer to the current crisis in Europe, the liberal business paper Financial Times Deutschland contends: » more
The desire for independence cannot provide an answer to the current crisis in Europe, the liberal business paper Financial Times Deutschland contends: "Only by putting national borders and mentalities behind it has Europe become prosperous and secure. The same goes for dealing with banking, economic and financial crises that demand too much from small states like Ireland. Only a large community can help with problems that a small state can't cope with on its own. The separatists realise this too: the Catalonians, for example, would like to separate from Spain, but at the same time they knock on Madrid's door for help. However you can't claim success and wealth for yourself while at the same time passing on all the problems and burdens to the central government or the EU. Europe should maintain its regional diversity – along the lines of federalist Germany. But that doesn't mean proclaiming an independent state at every opportunity. In the long term that would overstretch Europe's problem-solving capacities."
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More from the press review on the subject » Domestic Policy, » Separatism, » Economy, » Spain, » Belgium, » Europe
Il Sole 24 Ore - Italy | Friday, 12. October 2012
The financial markets barely reacted on Thursday to rating agency Standard & Poor's downgrading of Spain's credit status to BBB-, just one notch above junk status. While the markets are working on the assumption that Spain will receive assistance from the EU bailout fund, Berlin is delaying the step because of the national elections in Germany, the liberal-conservative business paper Il Sole 24 Ore complains: » more
The financial markets barely reacted on Thursday to rating agency Standard & Poor's downgrading of Spain's credit status to BBB-, just one notch above junk status. While the markets are working on the assumption that Spain will receive assistance from the EU bailout fund, Berlin is delaying the step because of the national elections in Germany, the liberal-conservative business paper Il Sole 24 Ore complains: "Angela Merkel hopes to win the elections in September 2013 without any obstacles, or in other words without having to ask the Bundestag to approve further aid for the country's struggling European partners. Although the strategy has been obvious for weeks now, it's increasingly unclear whether it will actually be successful. The problem is less Athens than Madrid. ... Owing to the uncertainties regarding the terms tied to a bailout for Spain, which has passed the fifth austerity programme in less than a year, is hesitating to apply for one. Rajoy's procrastination may suit Merkel to a T, but ultimately it is blocking intervention by the ECB and slowing down the construction of a new, more effective governance of the Eurozone."
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More from the press review on the subject » EU Policy, » Fiscal Policy, » Germany, » Spain
All available articles from » Adriana Cerretelli
eldiario.es - Spain | Thursday, 4. October 2012
The Spanish Ministry of the Interior announced on Wednesday that it will launch an inquiry into the conduct of several police officers during a demonstration held before the parliamentary buildings on September 25. Video footage on the Internet shows that there were violent clashes between police officers and other citizens at the Atocha train station some distance from the demonstration. In the online newspaper eldioario.es Blogger Ignacio Escolar voices doubts that the investigation will be thorough: » more
The Spanish Ministry of the Interior announced on Wednesday that it will launch an inquiry into the conduct of several police officers during a demonstration held before the parliamentary buildings on September 25. Video footage on the Internet shows that there were violent clashes between police officers and other citizens at the Atocha train station some distance from the demonstration. In the online newspaper eldioario.es Blogger Ignacio Escolar voices doubts that the investigation will be thorough: "The facts are well-known; the videos pretty conclusive. The security forces fired shots in the train station, dealt blows to passengers on the platforms and threatened members of the press. But the violent demonstrators - which there were - weren't even in the station. … I don't have high hopes for this 'internal investigation', which has already been downgraded to 'routine'. Given that the Interior Minister Jorge Fernández has already praised the police officers for their 'extraordinary work' and awarded a medal and a life salary to the officer who led the operations, it's unlikely that this investigation will produce clear results."
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More from the press review on the subject » Domestic Policy, » Fiscal Policy, » Unrest / Riots, » Spain
All available articles from » Ignacio Escolar
Cinco Días - Spain | Tuesday, 2. October 2012
Spanish Prime Minister Mariano Rajoy will attend a meeting with the presidents of Spain's autonomous regions today, Tuesday. Vigorous disputes are pre-programmed, the left-liberal business paper Cinco Días predicts, adding that this is the last thing Spain needs now: » more
Spanish Prime Minister Mariano Rajoy will attend a meeting with the presidents of Spain's autonomous regions today, Tuesday. Vigorous disputes are pre-programmed, the left-liberal business paper Cinco Días predicts, adding that this is the last thing Spain needs now: "The harshness of the cuts in public spending has destroyed the harmony among the regional presidents of the People's Party [to which Rajoy also belongs]. And this combined with Catalonia's demands for independence is bound to ensure that the meeting of regional presidents will be marred by disputes and bitter demands. Nonetheless Mariano Rajoy has every intention of avoiding polemics and discussions that could divert attention from Spain's main objective in these moments: the need for all the public administration authorities to achieve their target deficits this year."
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More from the press review on the subject » Fiscal Policy, » Federalism, » Separatism, » Spain
El Mundo - Spain | Friday, 28. September 2012
The Spanish government presented its draft budget for 2013 on Thursday. But according to the conservative daily El Mundo the government based the budget on too many optimistic assumptions: » more
The Spanish government presented its draft budget for 2013 on Thursday. But according to the conservative daily El Mundo the government based the budget on too many optimistic assumptions: "When it approved the draft budget for next year yesterday, the cabinet made a risky bet: that tax revenues would rise by 3.8 percent despite the recession, growing unemployment and dwindling consumption. It's already very optimistic to assume that the economy will shrink by only 0.5 percent in 2013 even though the IMF predicted negative growth of 1.2 percent in July. But in addition the calculations are based on rising revenues from income tax and VAT that will be difficult to achieve. You get the feeling the government deliberately preferred to be optimistic in order to avoid further budget cuts and unpopular tax increases."
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More from the press review on the subject » Fiscal Policy, » Tax Policy, » Spain
El Mundo - Spain | Tuesday, 25. September 2012
While Spain is an increasingly popular destination for foreign tourists, considerably fewer Spaniards than in previous years went on holiday in their own country this summer. This proves that Spain needs more than austerity measures to overcome the crisis, the conservative daily El Mundo concludes: » more
While Spain is an increasingly popular destination for foreign tourists, considerably fewer Spaniards than in previous years went on holiday in their own country this summer. This proves that Spain needs more than austerity measures to overcome the crisis, the conservative daily El Mundo concludes: "Although this year may be one of the best in our history in terms of the number of foreign tourists who visited the country, domestic tourism has been badly hit by the crisis and is having a negative impact on a key sector of the Spanish economy. Yesterday we learned that the number of Spanish guests staying at hotels in the country fell by no less than 10.5 percent in the months of July and August. This is a clear sign of how much consumption is suffering in the crisis and of the need for structural reforms to get the economy back on its feet. Because with its austerity measures and tax increases the government is impoverishing families and preventing the economy from recovering."
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More from the press review on the subject » Consumers, » Tourism, » Economy, » Spain
ABC - Spain | Monday, 17. September 2012
The Finnish Prime Minister Jyrki Katainen flew to Madrid last Tuesday in the tourist class of a regular scheduled flight. The conservative daily ABC sees this as an example for Spanish politicians to follow: » more
The Finnish Prime Minister Jyrki Katainen flew to Madrid last Tuesday in the tourist class of a regular scheduled flight. The conservative daily ABC sees this as an example for Spanish politicians to follow: "It was a business trip but the Finnish politicians don't use private or military aircraft unless it's an emergency. … And the Finnish state uses fewer official cars than any of our regions. Not because of the crisis or a certain austerity measure but out of principle. It prefers to spend the money on its model education system. Katainen is not impressed by the fact that the EU is giving financial assistance to a country where even the most insignificant local politician travels around followed by a troop of advisers in a fleet of official cars. … We lack the credibility to ask help of those who have themselves been cutting back not out of necessity, but out of consideration for others and conviction."
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More from the press review on the subject » EU Policy, » Fiscal Policy, » Spain, » Finland
All available articles from » Ignacio Camacho
El Mundo - Spain | Tuesday, 11. September 2012
Spanish Prime Minister Mariano Rajoy on Monday gave his first televised interview since taking office. The conservative daily El Mundo describes his vague answers as an evasive tactic: » more
Spanish Prime Minister Mariano Rajoy on Monday gave his first televised interview since taking office. The conservative daily El Mundo describes his vague answers as an evasive tactic: "Most of the questions that the five journalists posed to the prime minister yesterday pertained to the possibility of Spain applying for a bailout for its economy. Rajoy dodged the subject and simply affirmed that he must examine the options. He categorically denied that the government had already negotiated the terms with its European partners. He also avoided giving concrete details about austerity measures and, as far as pensioners are concerned, merely said that they would be treated as 'well as possible'. The same ambiguity and reserve was evident in most of his answers, which is hardly soothing for a public that wants explanations and more details about planned measures."
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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Spain
Blog Gavin Hewitt's Europe - United Kingdom | Sunday, 9. September 2012
The ECB's decision to purchase government bonds of ailing euro states gives Spain some much needed extra time, Europe editor Gavin Hewitt writes on his blog for the BBC: » more
The ECB's decision to purchase government bonds of ailing euro states gives Spain some much needed extra time, Europe editor Gavin Hewitt writes on his blog for the BBC: "The key for Madrid is to avoid any rescue that comes with further conditions. The government will fight very hard not to end up with a full bailout programme. The Deputy Minister for Trade, Jaime Garcia Legaz, was making the case that Spain did not need extra help. He said that exports to countries outside the eurozone were growing fast. Wage competitiveness was returning, as was a current account surplus. There was, in his view, enough good news to justify a pause before seeking a rescue. This is an important moment in the eurozone crisis. The ECB has played its strongest card. It will certainly buy time. It should be remembered, however, that the eurozone economy will deteriorate further in the months ahead and that will once again challenge most of the assumptions that a corner has been turned."
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More from the press review on the subject » Financial Markets, » Economy, » Spain, » Europe
All available articles from » Gavin Hewitt
El Mundo - Spain | Thursday, 6. September 2012
German Chancellor Angela Merkel will meet her Spanish counterpart Marian Rajoy for talks in Madrid today. She shouldn't abuse her vast power, the conservative daily El Mundo advises: » more
German Chancellor Angela Merkel will meet her Spanish counterpart Marian Rajoy for talks in Madrid today. She shouldn't abuse her vast power, the conservative daily El Mundo advises: "Angela Merkel arrives in Madrid with more power than Hitler had when he met with the dictator Franco in [the French-Spanish border town of] Hendaye [to persuade him to side with Germany in 1940]. … The chancellor benefits from being able to borrow money at around one percent interest while Italy and Spain are paying six or seven percent. But Germany should not pull the noose around Spain's neck too tightly because choking these two major nations will also endanger Germany's prosperity. Too much greed is unhealthy. The chancellor must stop abusing the situation. It would already be a good deal for her if Spain and Italy paid three to four percent for their debts and the risk premium was kept below 300 basis points while the Germans continue to pay just roughly one percent."
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All available articles from » Luis María Anson
ABC - Spain | Wednesday, 5. September 2012
The ECB is due to state its position on the purchase of government bonds on Thursday while on the same day German Chancellor Angela Merkel travels to Madrid. This will be a crucial day for Europe's future, the conservative daily ABC notes, but doubts that any truly important decisions will be made: » more
The ECB is due to state its position on the purchase of government bonds on Thursday while on the same day German Chancellor Angela Merkel travels to Madrid. This will be a crucial day for Europe's future, the conservative daily ABC notes, but doubts that any truly important decisions will be made: "Will the future not just of Spain but all Europe be decided this Thursday in Madrid and Frankfurt? It should be, but in Europe things tend to move very slowly - too slowly, one could say, and many dates that were considered crucial have come to nothing. … In Madrid Merkel will doubtless want to help her Spanish counterpart Rajoy, whose efforts she has acknowledged. But there are no friendships in politics, just interests, and Merkel must defend above all her own interests. Even though we will no doubt hear an abundance of amiable phrases from the two, there's no guarantee that any concrete action will be taken. So it could be that we're no closer to a solution on Friday than we are today."
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All available articles from » José María Carrascal
Cinco Días - Spain | Friday, 17. August 2012
The Spanish share index, the Ibex, rose to 7.417 points on Thursday while the yields on Spanish bonds dropped considerably. The markets are clearly acting on the assumption that Spain will soon seek a bailout, the business paper Cinco Días concludes: » more
The Spanish share index, the Ibex, rose to 7.417 points on Thursday while the yields on Spanish bonds dropped considerably. The markets are clearly acting on the assumption that Spain will soon seek a bailout, the business paper Cinco Días concludes: "Slowly but surely the market has begun to send out positive signals regarding Spain's sovereign debt. The reason for this is the growing conviction among investors that Spain will request help from Europe to cover the costs of its public debt. This was the precondition stipulated by ECB chief Mario Draghi at the beginning of August for the ECB to continue purchasing Spanish bonds. … And since then the conviction that the government will soon request assistance from its European partners and that the ECB will then proceed to make massive purchases of Spanish bonds has gained ground."
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ABC - Spain | Friday, 10. August 2012
Five years after the outbreak of the international financial crisis the politicians still haven't got the situation under control, the conservative daily ABC writes, recalling August 9, 2007, the day the crisis began with the announcement that the French bank BNP Paribas was in trouble: » more
Five years after the outbreak of the international financial crisis the politicians still haven't got the situation under control, the conservative daily ABC writes, recalling August 9, 2007, the day the crisis began with the announcement that the French bank BNP Paribas was in trouble: "Hardly anyone, not to say no one, thought back then that the most serious economic crisis since the Great Depression of the 1930s was about to begin. … At a political level the crisis has brought down governments of all stripes on both sides of the Atlantic, including the Republicans in the US, Berlusconi in Italy and Zapatero in Spain. That five years on the crisis still hasn't been overcome testifies to the incompetence of most Western governments - who are completely at odds with each other over whether economic stimulus or austerity packages will bring recovery. However some have been more successful than others. The US solved its banking problems at lightning speed and Germany is sticking to its austerity policy despite the recession, while the Spanish Socialists simply denied the crisis."
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El Mundo - Spain | Thursday, 9. August 2012
The left-wing member of the Andalusian parliament Juan Manuel Sánchez Gordillo along with roughly 400 members of the Andalusian trade union SAT organised a protest shop-lifting operation at two supermarkets in southern Spain. The stolen staple foods were to be donated to an NGO in Seville that supplies poor people with food. The conservative daily El Mundo sees such protests as useless and dangerous: » more
The left-wing member of the Andalusian parliament Juan Manuel Sánchez Gordillo along with roughly 400 members of the Andalusian trade union SAT organised a protest shop-lifting operation at two supermarkets in southern Spain. The stolen staple foods were to be donated to an NGO in Seville that supplies poor people with food. The conservative daily El Mundo sees such protests as useless and dangerous: "It is abhorrent when the political representatives who are supposed to set a good example and defend the law call on people to disobey it. This is a serious matter. It sets a precedent that could prompt others to commit further offences. There are those who could use this approach as an excuse to channel social frustration and trigger riots. And the incident also conveys a false image of Spain as a third-world country. It's true that many Spaniards are in financial difficulties, but no one is dying of starvation in Spain. The social services continue to function and of course there are alternatives to breaking into shops and taking the merchandise by force."
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Expansión - Spain | Monday, 6. August 2012
After the insolvency of several Spanish autonomous communities a debate has broken out about reforming the country's federalism. The varying level of autonomy among the regions is a serious birth defect of the present system that will be difficult to remedy, Francism Cabrillo of the think tank Civismo writes in the conservative business paper Expansión: » more
After the insolvency of several Spanish autonomous communities a debate has broken out about reforming the country's federalism. The varying level of autonomy among the regions is a serious birth defect of the present system that will be difficult to remedy, Francism Cabrillo of the think tank Civismo writes in the conservative business paper Expansión: "As the years pass it becomes increasingly clear that the special status regarding fiscal prerogative accorded to the autonomous communities of Navarre and the Basque Country represents a fundamental flaw in the current constitution. … The major problem with our strange form of federalism lies not in the lesser or greater extent of decentralisation or the varying degrees of competences for the different autonomous communities. It lies in the fact that we have created a system that grants privileges to certain communities over others. At the same time it leaves the central government in a weakened position vis-à-vis the communities, which collect all the tax revenues and then reach a 'deal' with the central government as to how much they contribute to the upkeep of the national public sector."
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Ependytis - Greece | Sunday, 5. August 2012
The business paper Ependytis is surprised to see how passively the leaders of the Eurozone are behaving this month even though the future of the Monetary Union is at stake: » more
The business paper Ependytis is surprised to see how passively the leaders of the Eurozone are behaving this month even though the future of the Monetary Union is at stake: "They act like nothing important is going on. As if there weren't urgent tasks to be fulfilled, as if the existence of the Eurozone, which they so eagerly defend, did not hang in the balance. Let's just let August go by without doing anything; we'll get down to real business in September! We'll let Greece sweat a bit, and Italy and Spain too, with their spiralling credit costs, … and little Cyprus can stew under a tough austerity package as punishment for its sins. It's enough that good habits aren't being broken: the summer holidays of the elite, the lack of action. ... Europe goes on holiday in August, but not the Europeans, or not all of the them. Europe takes a break while the Europeans worry. Europe sleeps while the Europeans have nightmares. The European leaders are recovering from the exertions of their indecisiveness."
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De Tijd - Belgium | Friday, 3. August 2012
With his catastrophic communication policy Draghi has gambled away the ECB's credibility, the liberal daily De Tijd criticises: » more
With his catastrophic communication policy Draghi has gambled away the ECB's credibility, the liberal daily De Tijd criticises: "What got into Draghi? Does he really think that he can get away with telling investors - those of London City, mind you - that 'whatever it takes' will be done to save the euro one week, only to go back on his words the next? Someone has to tell this Italian that investors are a very excitable bunch. By making promises in London that he couldn't keep, Draghi has destroyed the credibility of the ECB. And that's a bad thing. ... The yields on Spanish bonds rose to 7.17 percent yesterday as a result of Draghi's blunder. Draghi will no doubt find this highly irrational once more. But faced with such wretched communication skills it's entirely rational that the investors are running scared."
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Corriere della Sera - Italy | Friday, 3. August 2012
ECB chief Draghi does well to make countries take their fate into their own hands, writes the liberal-conservative daily Corriere della Sera: » more
ECB chief Draghi does well to make countries take their fate into their own hands, writes the liberal-conservative daily Corriere della Sera: "With their downhill run the markets are punishing Draghi for not keeping his promise. But the markets are wrong. ... An unlimited ECB aid programme for Italy and Spain of the kind Paul Krugman and many other experts around the globe are calling for would be in contradiction of the EU treaties. ... Unconditional ECB support would also torpedo the debt ceiling that the countries in question have agreed to under the pressure of rising borrowing costs. Because political Europe stubbornly refuses to act jointly in the crisis, the power of decision Draghi lays claim to has advantages that may be rewarded by less jittery financial markets. Firstly, he is leaving all the doors open to the ECB and secondly, he is reminding the political leaders of a key truth: saving the euro depends not just on the ECB but also on the governments and their voters."
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El País - Spain | Friday, 3. August 2012
The ECB has indicated that it is willing to buy massive amounts of government bonds of crisis countries - but only once they have officially applied for help. This decision will have major repercussions for Spanish society, the left-liberal daily El País fears: » more
The ECB has indicated that it is willing to buy massive amounts of government bonds of crisis countries - but only once they have officially applied for help. This decision will have major repercussions for Spanish society, the left-liberal daily El País fears: "For Spain, the consequences are clear. Now that the door of direct intervention by the ECB has closed, the government will have to think about applying for help from the bailout fund and when the best time to do so would be. … After the banking rescue the government insisted that the Spanish economy wouldn't need a second bailout. But now the conditions for refinancing Spain's debt make it seem inevitable that the government will have to apply for help from the ECB, breaking yet another of its emphatic promises. ... It's difficult to avoid the perception that the single currency will be maintained at the expense of draconian measures in Spain and Italy, with unforeseeable consequences for society."
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La Vanguardia - Spain | Thursday, 2. August 2012
ECB chief Mario Draghi must live up to the high expectations he fuelled last week at the meeting of the governing council today, warns the liberal daily La Vanguardia: » more
ECB chief Mario Draghi must live up to the high expectations he fuelled last week at the meeting of the governing council today, warns the liberal daily La Vanguardia: "The main weapon of the ECB is its credibility. The president of the ECB is therefore obliged today to fulfil the expectations he awakened last week when he said the institution would do whatever it takes to save the euro and that what it does will be enough. All political and economic observers interpreted these words to the effect that the monetary authority is willing to fire up mechanisms to stabilise the debt market and allow reasonable financing for the members of the monetary union, in particular Spain and Italy. Both countries, which are suffering from the distrust of the financial markets, could see their current financing problems worsen to the point where they are unsustainable if Mario Draghi doesn't get a grip on the situation today."
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La Repubblica - Italy | Wednesday, 1. August 2012
The European Central Bank is expected to take an important step in saving the euro on Thursday. Economic Nobel Prize laureate Paul Krugman voices his support in the left-liberal daily La Repubblica for ECB President Mario Draghi and his proposal to purchase government bonds: » more
The European Central Bank is expected to take an important step in saving the euro on Thursday. Economic Nobel Prize laureate Paul Krugman voices his support in the left-liberal daily La Repubblica for ECB President Mario Draghi and his proposal to purchase government bonds: "[P]olicymakers would have to (a) do something to bring southern Europe's borrowing costs down and (b) give Europe's debtors the same kind of opportunity to export their way out of trouble that Germany received during the good years. ... Draghi - who I suspect understands all of this - basically floated the idea of having the central bank buy lots of southern European bonds to bring those borrowing costs down. But over the next two days German officials appeared to throw cold water on that idea. ... The euro can't be saved unless Germany is also willing to accept substantially higher inflation over the next few years - and so far I have seen no sign that German officials are even willing to discuss this issue, let alone accept what's necessary. Instead, they're still insisting, despite failure after failure - remember when Ireland was supposedly on the road to rapid recovery? - that everything will be fine if debtors just stick to their austerity programs. ... For failure of the euro wouldn't just cause economic disruption; it would be a giant blow to the wider European project, which has brought peace and democracy to a continent with a tragic history."
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Cinco Días - Spain | Wednesday, 1. August 2012
The finance ministers of several Spanish regions spoke out against Madrid's stringent austerity programme at a meeting with the Spanish central government on Tuesday. But the pressure of the financial markets will only ease once transparency and order has been restored to the finances of the banks and regions: » more
The finance ministers of several Spanish regions spoke out against Madrid's stringent austerity programme at a meeting with the Spanish central government on Tuesday. But the pressure of the financial markets will only ease once transparency and order has been restored to the finances of the banks and regions: "The prolonged desert crossing to which the markets have subjected Spanish finances, both public and private, won't end until there is complete transparency in the balance sheets of the banks and autonomous regions and sufficient confidence that they will be able to meet their financial obligations punctually. … But the autonomous regions continue to feed the doubts of the financial markets, and even those of their European partners. It is the responsibility of central government to meet the deficit target agreed with Brussels, but it won't be able to do so without the cooperation of the autonomous regions, which it has put under strict surveillance to ensure the deviations of 2011 are not repeated."
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Main focus of Friday, 27. July 2012
The head of the ECB Mario Draghi has signalised that the Central Bank will take stronger action in the debt crisis and provide further support ... » more
The head of the ECB Mario Draghi has signalised that the Central Bank will take stronger action in the debt crisis and provide further support to crisis-stricken states. His statement on Thursday that the ECB will do whatever it takes to preserve the euro is being interpreted as a move towards buying government bonds. Some commentators express relief at hearing these words while others find them alarming and warn against indirect financing of sovereign debt.
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Naftemporiki - Greece | Friday, 27. July 2012
Following Mario Draghi's statement the ECB would do whatever it takes to resolve the euro crisis and his vague hints regarding the bank's purchase of government bonds the conservative daily Naftemporiki hopes that he will keep his promise: » more
Following Mario Draghi's statement the ECB would do whatever it takes to resolve the euro crisis and his vague hints regarding the bank's purchase of government bonds the conservative daily Naftemporiki hopes that he will keep his promise: "Draghi has acted as one would expect of a banker of his calibre. … Yesterday can be described as a victory for the defenders of the euro, but in the next few days the markets will test whether Draghi will really make good on his promise. … If the president of the European Central Bank doesn't have the courage and the resolve to either go against the will of leading European politicians or simply act alone, … the dark days will make a surprisingly quick and fulminating comeback and the European Central Bank will lose its credibility and also its ability to change the mood on the markets with a statement."
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All available articles from » Nikos Frantzis
La Repubblica - Italy | Friday, 27. July 2012
An independent intervention by the ECB would allow for a solution to the euro crisis that goes against Angela Merkel without her losing face, the ... » more
An independent intervention by the ECB would allow for a solution to the euro crisis that goes against Angela Merkel without her losing face, the left-liberal daily La Repubblica concludes. "Draghi has apparently received the silent consent of the German leadership, which he can use to break the resistance of the hawks [the hardliners in the euro debate who take the German line]. If the ECB acts independently to deescalate the crisis, which even in Germany no one wants, it allows the chancellor to stick to her principles. This will enable the chancellor to prevent the conflict over how to save the common currency from turning into a full-on clash of governments, someting which was starting to seem inevitable at the last summit and which would mean a loss of face for her."
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All available articles from » Andrea Bonanni
El País - Spain | Friday, 27. July 2012
After Mario Draghi pledged that the ECB would do whatever it takes to resolve the euro crisis the Spanish share index rose by six percent on Thursday. The left-liberal daily El País asks why the eagerly awaited announcement was so long in coming: » more
After Mario Draghi pledged that the ECB would do whatever it takes to resolve the euro crisis the Spanish share index rose by six percent on Thursday. The left-liberal daily El País asks why the eagerly awaited announcement was so long in coming: "If the mere promise of intervention was enough to halt the downwards spiral of Spanish and Italian bonds why didn't the ECB do it sooner? One broadly accepted explanation is that the bank wanted to punish the [Spanish] government for its poor handling of the financial crisis. But when the punishment started to impact Italy the ECB changed its course, ceding to the governments' demands and putting a stop to the speculation with sovereign debt. Another explanation is that Draghi didn't want to say anything until the bailout package for Spain's banks was in place and the new stability mechanism was in the offing."
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i - Portugal | Thursday, 26. July 2012
According to reports in the press the Eurozone countries are considering using the EFSF bailout fund to buy Spanish bonds from private banks in a bid to lower persistently high interest rates. But irrespective of the increasingly critical situation on the credit market the Spanish government is still insisting it will not seek a total bailout. But Madrid's room for manoeuvre is shrinking, the daily Jornal I warns: » more
According to reports in the press the Eurozone countries are considering using the EFSF bailout fund to buy Spanish bonds from private banks in a bid to lower persistently high interest rates. But irrespective of the increasingly critical situation on the credit market the Spanish government is still insisting it will not seek a total bailout. But Madrid's room for manoeuvre is shrinking, the daily Jornal I warns: "In recent weeks Spain has taken over Greece's starring role in the euro crisis. Spain's problems have multiplied: first it was the banks and now it's the regions that urgently need help. The likelihood of Spain having to seek international assistance is growing. This help could take two forms: either Madrid demands that the bailout fund buy Spanish bonds or it applies for a total bailout as Portugal has done. The increasingly high risk premiums on Spanish bonds are leaving our neighbour's government hardly any room for manoeuvre."
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All available articles from » Pedro Braz Teixeira
eldiario.es - Spain | Wednesday, 25. July 2012
Despite the efforts of the Spanish government the ECB so far has not intervened to lower the rising yields on Spanish bonds. An economist using the pseudonym S. Horse warns in the Zona Crítica blog published by new online newspaper eldiario.es of the dangers of applying for a bailout prematurely: » more
Despite the efforts of the Spanish government the ECB so far has not intervened to lower the rising yields on Spanish bonds. An economist using the pseudonym S. Horse warns in the Zona Crítica blog published by new online newspaper eldiario.es of the dangers of applying for a bailout prematurely: "Because the ECB is not intervening, Spain no longer has many options. And the ones it has are all complicated. One option would be to apply for a 'total bailout', as Portugal, Ireland and Greece have done. Another would be to exit the euro. … If we asked the people which of these two approaches represented the lesser evil, they would choose the former. In principle I agree, however, with one reservation: even if we applied for the bailout today, we may still be forced to leave the Eurozone in the near future. And that would be the worst option. … We would have to take out all our loans in euros. And we would have to pay them back in euros, too - no matter which currency we ended up with."
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Financial Times - United Kingdom | Tuesday, 24. July 2012
With an eye on the crisis-ridden economies of Spain and Greece, Martin Feldstein, professor of economics at Harvard University, explains in a guest column for the liberal daily Financial Times that the solution could lie in devaluing the single currency: » more
With an eye on the crisis-ridden economies of Spain and Greece, Martin Feldstein, professor of economics at Harvard University, explains in a guest column for the liberal daily Financial Times that the solution could lie in devaluing the single currency: "A lower value of the euro would reduce the prices of eurozone exports and raise the cost of imports, reducing or eliminating the current account deficits of the peripheral European countries, since about half of their trade is with countries outside the eurozone. The weaker euro would also boost Germany's net exports, raise German wages and prices and reduce the trade imbalance within the eurozone. The increase in peripheral country net exports would also raise their gross domestic product and so reverse their recessions that were caused by higher taxes and cuts in government spending. That would make it politically easier to achieve the needed fiscal consolidations. And shifting from recession to growth would raise business incomes and employment, reducing the volume of bad loans and mortgage defaults now hurting the banks."
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Main focus of Tuesday, 24. July 2012
Speculation over Greece's euro exit and Spain's precarious situation have caused turbulence in Europe's financial markets. The euro fell on Monday to its lowest level ... » more
Speculation over Greece's euro exit and Spain's precarious situation have caused turbulence in Europe's financial markets. The euro fell on Monday to its lowest level in two years, Spain's interest rates hit a record high, and risk premiums are also rising steeply in Italy. Commentators are baying for the ECB to buy up government bonds and decrying Berlin's blockade mentality in the deepening euro crisis.
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Diário de Notícias - Portugal | Tuesday, 24. July 2012
In view of the recent turbulence on Europe's stock markets the daily newspaper Diário de Notícias criticises Berlin's obstructive behaviour: » more
In view of the recent turbulence on Europe's stock markets the daily newspaper Diário de Notícias criticises Berlin's obstructive behaviour: "The risk premiums on Spanish (and Italian) bonds are climbing to record levels - despite the horrifying austerity package Berlin and Brussels have foisted on Madrid in exchange for approving assistance for Spain's banks. Regions like Valencia are bankrupt and need help from the central government. At the same time [Jens] Weidmann, the cynic who heads the Bundesbank, is pushing for Spain to apply for a complete bailout. What terrible cruelty! The EFSF has been reduced to small change, and the new euro bailout fund [the ESM] will be subject to the scrutiny of Germany's Constitutional Court at least until September 12. Meanwhile the ECB is still refusing to buy government bonds on the secondary market. To promise something that doesn't exist is the worst insult to those who need it. The silence of the cowards continues in most of Europe's capitals."
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All available articles from » Viriato Soromenho-Marques
El Mundo - Spain | Tuesday, 24. July 2012
There is no reason why Spain should still be under such pressure from the financial markets after its government implemented the recent austerity package, according to the conservative daily El Mundo, which calls for the ECB to step in: » more
There is no reason why Spain should still be under such pressure from the financial markets after its government implemented the recent austerity package, according to the conservative daily El Mundo, which calls for the ECB to step in: "It's irrational that [the financial markets] should ignore the Spanish government's reforms. So we must turn our attention to Germany and the ECB. It's up to them to put an end to this pressure which is battering our nation. Germany cannot hide behind a contradiction: on the one hand endorsing euro loans, on the other allowing Spain to totter on the edge of the abyss. The only explanation is that Germany intends to sever itself from a number of EU states. And say goodbye to an EU which is suffering under the design flaw of having no financial institution to assume ultimate responsibility. Merkel must allow [ECB president] Draghi to exert an influence over the markets, as he did for the second time months ago, and alleviate this unbearable situation."
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Il Sole 24 Ore - Italy | Tuesday, 24. July 2012
If the European Central Bank (ECB) doesn't intervene now to halt the escalating European debt crisis the monetary union is doomed, warns Roberto Napoletano in the liberal-conservative business paper II Sole 24 Ore: » more
If the European Central Bank (ECB) doesn't intervene now to halt the escalating European debt crisis the monetary union is doomed, warns Roberto Napoletano in the liberal-conservative business paper II Sole 24 Ore: "The European Central Bank must do its bit to rescue the euro - and do it now. A radical shift in thinking is required because the Greek crisis has taught us that it's not enough to announce the limited purchase of government bonds. It must be made clear to the financial markets that there are no limits to either the power or the resources of the ECB. If we find the courage and the energy to do this, we will save the euro. If not, no one, I repeat no one, will have anything to smile about because sooner or later even the so-called AAA countries will pay a heavy price for the destruction they have caused with their short-sightedness. … The excuse that the ECB lacks the powers for such intervention doesn't apply, because the imperative of protecting the Eurozone gives the Bank the necessary authority. The Bundesbank, too, will be forced to recognise this."
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Gazeta Wyborcza - Poland | Tuesday, 24. July 2012
The record yields on Spanish bonds prompt the chief economist of Poland's Invest Bank, Wiktor Wojciechowski, to paint a gloomy picture of the global economy: » more
The record yields on Spanish bonds prompt the chief economist of Poland's Invest Bank, Wiktor Wojciechowski, to paint a gloomy picture of the global economy: "The risk premium on Spanish bonds, which has reached a record high, reflects to a certain extent the anxiety felt all over the world right now. I fear that the 100 billion euros promised to the Spanish banking sector won't be enough to stabilise the situation. Therefore Prime Minister Rajoy's government will likely have to ask for further assistance from the EU institutions in its bid to fight the worsening recession. A decision on this could come at the beginning of 2013, but if the yields on the bonds remain as high as they are now it will come sooner. The situation in Spain is diametrically opposed to that in Greece, because there the main problem is the public debt that needs restructuring. … The rapid rise in public debt is also a problem in Spain, but far more ominous is the threat emanating from private sector debt, which has risen to more than twice the country's GDP."
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Corriere del Ticino - Switzerland | Friday, 20. July 2012
After the German parliament's approval on Thursday, the path is free for the Spanish bank bailout operation to go ahead. But this is just a drop in the ocean, writes the liberal daily Corriere del Ticino, because the high interest rates on government bonds could quickly be the doom of both Spain and the second struggling country Italy: » more
After the German parliament's approval on Thursday, the path is free for the Spanish bank bailout operation to go ahead. But this is just a drop in the ocean, writes the liberal daily Corriere del Ticino, because the high interest rates on government bonds could quickly be the doom of both Spain and the second struggling country Italy: "The austerity packages adopted in Madrid and Rome haven't reduced the borrowing costs the countries must shoulder to obtain fresh money on the financial market. And the investors' flight to safer havens continues, as the negative interest rates on short-term German, Finnish and Austrian bonds demonstrated. This confirms the lack of credibility of the measures agreed at the last euro crisis summit. … Without the new bailout fund the summer threatens to be a very tricky period for Spain and Italy. They can only resort to the 100 billion euros in the old EFSF rescue fund, a ridiculous sum that will hardly impress the speculators."
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El Mundo - Spain | Friday, 20. July 2012
The anger of the Spanish population at the austerity measures passed by the Spanish Congress on Thursday is understandable, but the government must not bow under the pressure, writes the conservative daily El Mundo: » more
The anger of the Spanish population at the austerity measures passed by the Spanish Congress on Thursday is understandable, but the government must not bow under the pressure, writes the conservative daily El Mundo: "It's logical that the citizens, including those who voted for the [ruling] People's Party, are annoyed about the increase in VAT, cuts in unemployment benefits and lower salaries for public servants. But as understandable and justified as the protests may be, it is just as logical and true that the government has no leeway to cede because the state of the public coffers and dependence on foreign assistance don't permit it. … The government is trapped between the pressure of the markets and the pressure from the streets because on the very day the citizens expressed their discontent across Spain the yield premium on Spanish bonds rose to its highest ever level."
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Süddeutsche Zeitung - Germany | Friday, 20. July 2012
The German parliament approved by a large majority the EU bailout package for Spain's banks on Thursday. The country will nonetheless remain Europe's problem child for some time to come, the left-liberal daily Süddeutsche Zeitung writes: » more
The German parliament approved by a large majority the EU bailout package for Spain's banks on Thursday. The country will nonetheless remain Europe's problem child for some time to come, the left-liberal daily Süddeutsche Zeitung writes: "There is not a single public institution that is not in the grips of a crisis of confidence. The royal family, politics, the economic elite, the judiciary and also the media have all seen a dramatic plunge in their credibility. Spain is cutting back and reforming like never before, incorporating debt ceilings into its constitution, restructuring everything. But hope has become a rare asset. A couple of days ago the president of the economic and social council, an advisory body to the government, announced its prognosis: At best and at the earliest Spain's economic performance will return to 2007 levels - in other words pre-crisis levels - in 2025. ... But that's only provided a breath-taking 300,000 jobs are created each year starting 2014. Where the impetus for such a trend is supposed to come from isn't clear. The country will remain stuck in a recession in 2013."
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All available articles from » Javier Cáceres
Marianne2 - France | Friday, 20. July 2012
In Madrid alone at least 100,000 people demonstrated on Thursday against the Spanish government's austerity policies, and there were clashes between police and protesters. The threat of growing violence can only be avoided by a true coalition between the people and its government, the liberal internet portal Marianne2 urges: » more
In Madrid alone at least 100,000 people demonstrated on Thursday against the Spanish government's austerity policies, and there were clashes between police and protesters. The threat of growing violence can only be avoided by a true coalition between the people and its government, the liberal internet portal Marianne2 urges: "If the government were responsible and courageous it would put an ultimatum to Europe and explain that it cannot kill off its youth, and that a sensible plan is necessary. ... But nothing of the sort is being done. The elite refuses to offer the population a future, or rather: a present. ... Violence is escalating as the result of a complete lack of responsibility. All citizens need to be aware that they must unite and propose a realistic program to their politicians, who no longer have a grip on the situation. Indignation alone won't help matters. Courage and solidarity are called for. ... Otherwise the violence will only get worse. Until the unimaginable happens?"
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All available articles from » Philippe Murer
ABC - Spain | Thursday, 19. July 2012
The Spanish Congress votes today on the austerity measures put forward by the government last week. The conservative daily ABC warns the opposition not to incite the country to further protests against the government in the midst of the parliamentary debate: » more
The Spanish Congress votes today on the austerity measures put forward by the government last week. The conservative daily ABC warns the opposition not to incite the country to further protests against the government in the midst of the parliamentary debate: "The announcement of new reforms has triggered a protest movement with inflammatory calls for a 'war' against the government. The attempts of the trade unions and other leftist groups to drag Spain into a situation like that in Greece are lamentable. … The Socialists led by Alfredo Pérez Rubalcaba [the opposition in parliament] now have the choice: either they position themselves at the head of the street demonstrations - with unpredictable and uncontrollable consequences. Or they assume the role of a critical and watchful opposition that may vote against the government's measures but still works to stabilise the country and help it recover."
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Aamulehti - Finland | Wednesday, 18. July 2012
Finland and Spain have agreed that Madrid will provide collateral to Finland in exchange for its participation in the planned EU bailout. With the understanding Helsinki's requirements have been met, so that nothing stands in the way of the bank bailout that the EU finance ministers want to finalise in a conference call on Friday. However Spain's guarantees are mainly relevant for Finnish domestic policy, writes the liberal daily Aamulehti: » more
Finland and Spain have agreed that Madrid will provide collateral to Finland in exchange for its participation in the planned EU bailout. With the understanding Helsinki's requirements have been met, so that nothing stands in the way of the bank bailout that the EU finance ministers want to finalise in a conference call on Friday. However Spain's guarantees are mainly relevant for Finnish domestic policy, writes the liberal daily Aamulehti: "The guarantees are above all a fig leaf for the government to protect itself against the surly opposition and population, which are angry about the aid for crisis countries. The government can now say that it has protected Finnish tax euros while shouldering responsibility for the European bailout. This political circus will continue on Thursday and Friday, when parliament convenes in the middle of the summer holidays to address the government's report on the Spanish bailout package. ... It's a good thing the agreement on Spain's guarantees is not being kept as secret as the agreement with Greece. Openness is one of the foundations of democracy, without which any debate on this package would be superfluous."
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Cinco Días - Spain | Wednesday, 18. July 2012
At an auction of Spanish bonds on Tuesday, conditions for state borrowing improved compared with the previous month. However fewer and fewer foreign investors are buying the country's debt, which is instead being purchased by Spanish banks, the business paper Cinco Días warns: » more
At an auction of Spanish bonds on Tuesday, conditions for state borrowing improved compared with the previous month. However fewer and fewer foreign investors are buying the country's debt, which is instead being purchased by Spanish banks, the business paper Cinco Días warns: "The Spanish public purse got through yesterday's encounter with the financial markets - the first since the announcement of the 65 billion austerity programme - pretty well. The demand for 12- and 18-month bonds was high and interest rates went down noticeably in comparison with last month. At first glance this would seem to indicate that the markets have calmed down and that the investors are reacting positively to Rajoy's austerity plans. But not everything that glitters is gold. The emissions were mostly bought by Spanish banks, while foreign investors were scarce. This is a further sign of growing mistrust regarding the budget situation and economic developments in Spain."
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El País - Spain | Tuesday, 17. July 2012
According to the most recent estimates of the IMF, Spain's economy will also contract in the coming year. The left-liberal daily El País says the government's poor communication policy is to blame: » more
According to the most recent estimates of the IMF, Spain's economy will also contract in the coming year. The left-liberal daily El País says the government's poor communication policy is to blame: "The IMF's prognosis is realistic. Credit won't start flowing until the end of 2013, and even then only if the bank bailout in the first quarter of next year is successful. Foreign investors are leaving Spain because of the low growth prospects and uncertainties about the financial reform. … There are also other factors that are lowering confidence. One of them is the government's abysmal information policy, which is translating into a loss of credibility. … Vague indications are not the way to win the markets' trust. And it will be more difficult to ask the ECB for something the Spanish and the IMF take for granted: that it puts an end to the fluctuations in borrowing costs while the bank bailout is realised and the details of the banking union are sorted out."
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ABC - Spain | Monday, 16. July 2012
As of Sunday mandatory shop opening hours no longer apply in the Madrid region, meaning that stores can now stay open as long as they like. The conservative daily ABC is confident that this will create new jobs: » more
As of Sunday mandatory shop opening hours no longer apply in the Madrid region, meaning that stores can now stay open as long as they like. The conservative daily ABC is confident that this will create new jobs: "The flexibility on shop opening hours is a well-aimed measure towards overcoming the economic crisis. Instead of interventionism and red tape the goal is to increase the consumers' options and allow commerce to adjust its supply to concrete demands. The argument that this puts big shopping centres at an advantage regarding small businesses in residential areas is not compatible with the laws of the free market in a globalised world. … The more freedom, the better it is for everyone. Because it could lead to the creation of new jobs."
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Main focus of Friday, 13. July 2012
After the Euro Group's agreement to bail out Spanish banks, Prime Minister Mariano Rajoy has announced further drastic austerity measures and plans, among other things, ... » more
After the Euro Group's agreement to bail out Spanish banks, Prime Minister Mariano Rajoy has announced further drastic austerity measures and plans, among other things, to raise VAT. Several people were injured in Madrid during protests against the crisis policy. Commentators hope the drastic cuts will pay off in the end, but aren't sure that Spain will be able to steer clear of bankruptcy.
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Polityka Online - Poland | Friday, 13. July 2012
As part of its efforts to balance its shaky budget Spain raised its airport taxes on July 1. The left-liberal news portal Polityka Online sees this as counter-productive in a country whose economy is heavily dependent on tourism: » more
As part of its efforts to balance its shaky budget Spain raised its airport taxes on July 1. The left-liberal news portal Polityka Online sees this as counter-productive in a country whose economy is heavily dependent on tourism: "The Spanish government's decision is all the more surprising because as recently as June it was boasting that unemployment had gone down for the first time in a long period. Up to 100,000 Spaniards found employment at the beginning of the summer season. There was no talk of a revival in the industrial or construction sectors. So it looks like this improvement in the situation is down to the millions of tourists coming to the country. … Mariano Rajoy's government has plucked the hen that lays the golden eggs instead of looking after it. … This decision is great news for the Greeks and Portuguese. They can count on attracting the tourists who don't want to pay extra on the tickets they bought months ago."
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All available articles from » Cezary Kowanda
Handelsblatt - Germany | Friday, 13. July 2012
Whether Spain's reforms will make a positive impact won't be clear until the end of the year, the liberal business paper Handelsblatt concludes, but it's not sure the country won't go bankrupt before then: » more
Whether Spain's reforms will make a positive impact won't be clear until the end of the year, the liberal business paper Handelsblatt concludes, but it's not sure the country won't go bankrupt before then: "There was good news for the Spanish this week: they have a year longer, until 2014, to reduce their new indebtedness from the most recent level of 8.9 percent (end 2011) to below the deficit limit of three percent. … However even this short-term concession won't ease the pressure from the financial markets. If, by some means, it becomes clear at the end of the year that Spain will manage to attain its new budget goal, and if, by some means, there is a sign that the structural reforms are starting to take effect and that the economy has reached the end of its nosedive, confidence could resurge and lead to lower financing costs. With the current interest rate level, however, Spain won't last for that much longer."
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All available articles from » Anne Grüttner
De Standaard - Belgium | Friday, 13. July 2012
The draconian austerity programme announced by Prime Minister Mariano Rajoy will plunge Spain into the abyss, writes the liberal daily De Standaard: » more
The draconian austerity programme announced by Prime Minister Mariano Rajoy will plunge Spain into the abyss, writes the liberal daily De Standaard: "Of course it's an illusion that the budget deficit can be reduced in this way. The opposite will be the case. … It almost looks like Madrid has set out to prove that this strict orthodoxy leads to ruin. Apparently the glass needs to be left completely empty before the next step finally puts an end to this madness. And there is another indication that the euro crisis has reached a state of madness: a group of strong euro countries can finance its debts more cheaply than ever. Their budgets are benefiting from the crisis. … But this is no doubt the ominous calm before the storm. If the engine doesn't want to start up at these interest rates then obviously lack of credit is not the problem, and cheap money not the solution. Rather the entire system is broken. Then confidence evaporates. And no one knows how to repair the car."
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All available articles from » Bart Sturtewagen
Cinco Días - Spain | Friday, 13. July 2012
The Spanish government's austerity measures may delay economic recovery initially, but in the end they will encourage more sustained growth, the left-liberal business paper Cinco Días hopes: » more
The Spanish government's austerity measures may delay economic recovery initially, but in the end they will encourage more sustained growth, the left-liberal business paper Cinco Días hopes: "Of course for a society like the Spanish one, which is used to taking out credit to attend to its investment and consumption needs, it's normal to spend less once the credit disappears and disposable income goes down - whether it's as a result of lower salaries, job cuts or increased taxes. Now these three factors are competing with each other. … So demand won't increase in the coming quarters and recovery will be delayed for months. If before we saw light at the end of the tunnel, now we see that it was only a train coming in the opposite direction. But Rajoy's drastic cure will work in the end. It may have the effect of contracting the economy in the short and medium term, but it will pave the way for healthier growth in the future. It will realise its full potential as soon as all the economic players - from individual households to the state - recover their balance and adjust to the costs, the prices and the margins."
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Cinco Días - Spain | Wednesday, 11. July 2012
The agreement on the bank bailout in Spain could serve as a model for bank supervision throughout the Eurozone, the business paper Cinco Días writes: » more
The agreement on the bank bailout in Spain could serve as a model for bank supervision throughout the Eurozone, the business paper Cinco Días writes: "The memorandum regulating the EU's conditions for saving the struggling Spanish banks is the best guideline for the future common bank supervisory authority. This mechanism will facilitate the recapitalisation of banks in difficulties without the need to apply to the states, isolate the banks' risk so it doesn't contaminate government bonds, and harmonise the solvency and credit conditions for all financial institutes on the continent. Spain has been used as a guinea pig for taking the first steps towards something the northern countries had resisted, namely a European banking union and centralised supervision, as a precondition for the rescue of ailing Spanish banks, in particular the already nationalised savings banks."
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El País - Spain | Tuesday, 10. July 2012
The Spanish government announced a rise in VAT for the coming weeks on Monday. For the left-liberal daily El País this is a necessary evil: » more
The Spanish government announced a rise in VAT for the coming weeks on Monday. For the left-liberal daily El País this is a necessary evil: "Given the poor state of the economy, a rise in VAT is doubtless the measure that will cause the least damage. The negative effects are well known: it will reduce consumption and hamper economic stimuli. But without tax increases it would be impossible to reach the deficit targets for this and the coming three years. The Euro Group has [according to a decision made at its meeting on Monday] postponed the 3 percent deficit target until 2014 and accepted six percent for 2012, and this added flexibility gives the government more room for manoeuvre. But the lack of control over spending and the plummeting revenues are forcing it to resort to indirect taxes, including alcohol and tobacco taxes."
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Cinco Días - Spain | Monday, 9. July 2012
After Spain recently officially requested assistance for its banks, the finance ministers of the Euro Group must fight to ensure that the bank rescue operation is at all successful at their meeting this Monday, writes the business daily Cinco Días: » more
After Spain recently officially requested assistance for its banks, the finance ministers of the Euro Group must fight to ensure that the bank rescue operation is at all successful at their meeting this Monday, writes the business daily Cinco Días: "It is a month ago today since Spain agreed with the Euro Group to apply for assistance with the recapitalising of part of its financial sector. Four weeks that have only confirmed the fears of the Spanish government. Because if the operation miscarries, the worst-managed part of the private sector would burden the state and put the country in danger of having to be bailed out completely. … If this vicious circle isn't broken [at today's meeting] or if the markets don't interpret it as having been broken, it seems unlikely that the Eurozone's first experiment with a bank bailout will have a positive outcome."
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Blog Ignacio Escolar - Spain | Wednesday, 27. June 2012
Spain's Prime Minister Mariano Rajoy announced further cuts on Tuesday. At the same time it became known that the government is working on plans to increase the VAT. Ignacio Escolar criticises in his blog that Rajoy is not addressing the Spanish citizens in his declarations: » more
Spain's Prime Minister Mariano Rajoy announced further cuts on Tuesday. At the same time it became known that the government is working on plans to increase the VAT. Ignacio Escolar criticises in his blog that Rajoy is not addressing the Spanish citizens in his declarations: "Mariano Rajoy has finally confirmed what we had all feared: the bailout won't be for free and there will 'soon' be more 'difficult measures'. But he didn't say this in parliament. Nor from his seat of government, or at a press conference, in an interview or an official speech. The head of government, the representative of all Spaniards, the prime minister who had promised to personally confront the challenges and always tell the truth, announced the new cuts at the general assembly of the employers' association. Could there have been a better place to do this? … If he announces the cuts before companies, perhaps he should explain the increase in VAT in the place where the true sovereignty of the people resides: in the German parliament."
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ABC - Spain | Monday, 25. June 2012
Spain will officially apply for assistance from the European rescue fund this Monday. The conservative daily ABC points out that the future of the Eurozone depends on the precise terms of this multi-billion-euro loan: » more
Spain will officially apply for assistance from the European rescue fund this Monday. The conservative daily ABC points out that the future of the Eurozone depends on the precise terms of this multi-billion-euro loan: "For Spain, it is vital to achieve favourable terms for the recapitalisation of its banks. Only in this way can it overcome the present credit crunch caused by the banking crisis and release the necessary resources to give the ailing economy a boost. There is still a little room for manoeuvre in the negotiations because the final conditions won't be passed until the next Euro Group summit meeting on July 9. And all the European politicians must realise that this time it's not just about a simple agreement, as at many other summits. This time the credibility of the entire Eurozone is at stake. A decisive step towards a banking union would be the best outcome, both for the EU and for Spain's specific requirements and those of other struggling countries."
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Blog Mauro Guillén - Spain | Friday, 22. June 2012
Spain's ailing banks need up to 62 billion euros, according to reports presented by two independent consulting firms on Thursday. But more important is what happens to the money, economist Mauro Guillén explains in his blog for the online newspaper Huffington Post and calls for banks without a future not to be rescued: » more
Spain's ailing banks need up to 62 billion euros, according to reports presented by two independent consulting firms on Thursday. But more important is what happens to the money, economist Mauro Guillén explains in his blog for the online newspaper Huffington Post and calls for banks without a future not to be rescued: "What will the banks do with the billions to rain upon them? Will they continue to buy public debt to help the state finance itself or facilitate loans for the private sector? A recapitalisation without establishing clear criteria, incentives or priorities would in my view be a mistake for two reasons: firstly, the markets and investors are going to change their essentially pessimistic attitude regarding the Spanish economy until there are signs of economic growth and declining unemployment. … But more problematic is the fact that the government and the central bank are making no attempt whatsoever to distinguish between those banks that have a future and those that, despite millions in recapitalisation, won't be able to compete in the long term."
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El Mundo - Spain | Thursday, 21. June 2012
Spanish Prime Minister Mariano Rajoy announced on Wednesday that the debate on the state of the nation that usually takes place before the summer break will not be held this year. With this course of action he avoids explaining major decisions to his citizens, the conservative daily El Mundo criticises: » more
Spanish Prime Minister Mariano Rajoy announced on Wednesday that the debate on the state of the nation that usually takes place before the summer break will not be held this year. With this course of action he avoids explaining major decisions to his citizens, the conservative daily El Mundo criticises: "Rajoy's decision to dispense with the debate on the state of the nation is a grave political mistake. … The president's excuse that it doesn't make sense to have the debate after an election doesn't apply. [His predecessor] Zapatero's decision to forward the elections means that eight months have now passed since the last ones - eight months of intense activity and change that deserve profound analysis. A debate on the state of the nation was surely never as necessary as this one. The government, which is demanding more sacrifices from the people every day, has a moral obligation to explain its decisions. Not to do so is to treat the Spaniards like minors."
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El Periódico de Catalunya - Spain | Wednesday, 13. June 2012
The opposition in Spain is demanding that Prime Minister Mariano Rajoy explain the reasons behind the bank bailout. A spokesman for the prime minister announced on Tuesday that Rajoy would present an account of the situation in parliament in July. The prime minister doesn't seem to have grasped the gravity of the situation, the left-liberal daily El Periódico de Catalunya criticises: » more
The opposition in Spain is demanding that Prime Minister Mariano Rajoy explain the reasons behind the bank bailout. A spokesman for the prime minister announced on Tuesday that Rajoy would present an account of the situation in parliament in July. The prime minister doesn't seem to have grasped the gravity of the situation, the left-liberal daily El Periódico de Catalunya criticises: "Not until July will Rajoy appear before Congress to explain why he has applied for a bailout for the banks that are turning families left ruined by their mortgages out of their homes. This conduct is distancing us from Ireland and its civilised debate about the cutbacks and bringing us closer to the broken society that a failed state like Greece is having to bear. The [ruling] People's Party appears not to have an adequate understanding of what is happening here, of how the crisis is destroying the middle class, which will lead to a radicalisation of politics and society. The brash attitude towards Brussels, the bailout that no one is will to name as such, Rajoy's absence from Congress and the veto against an inquiry committee into the Bankia affair are pushing us closer and closer to Greece."
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All available articles from » Albert Sáez
Neue Zürcher Zeitung - Switzerland | Thursday, 14. June 2012
US rating agency Moody's has lowered Spain's credit rating by three notches on Wednesday evening, leaving it barely above junk status. It also warned that a further downgrade may be imminent. The liberal-conservative Neue Zürcher Zeitung is not surprised at the move: » more
US rating agency Moody's has lowered Spain's credit rating by three notches on Wednesday evening, leaving it barely above junk status. It also warned that a further downgrade may be imminent. The liberal-conservative Neue Zürcher Zeitung is not surprised at the move: "That Spain's financing difficulties have increased once more is not simply a result of the general uncertainty but above all the manner in which the bailout is taking place. The EU billions were supposed to free Spain of its enormous bank problem. However at present the EU has no instrument at its disposal for a direct recapitalisation of the banks. This has meant that the ties between the state and the banks remain intact. In fact Spain has actually become even more closely entwined with its banking sector. The financial aid is flowing to the weak institutions, while the state guarantees the loans."
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All available articles from » Nathalie Gratwohl
Diário Económico - Portugal | Tuesday, 12. June 2012
The decision to forego mandatory spending cuts in exchange for the bailout package for Spain's struggling banks shows that the same standards do not apply for all crisis countries, writes the business paper Diário Económico: » more
The decision to forego mandatory spending cuts in exchange for the bailout package for Spain's struggling banks shows that the same standards do not apply for all crisis countries, writes the business paper Diário Económico: "With Spain the abbreviation PIGS [Portugal, Ireland, Greece and Spain] is now complete. ... Like in George Orwell's Animal Farm, some animals in the EU are simply more equal than others. Unlike Portugal, Ireland and Greece, Madrid will receive billions in aid without having to impose any austerity measures. ... But when Lisbon tries to negotiate better conditions for their own pacts the gentlemen in Brussels have the cheek to label this as abstruse. The pep-talk text message Prime Minister Rajoy sent his economics minister on Saturday says it all: 'Hang in there, Spain is the fourth-largest economy - not Uganda.' This may be true, but when you look at the balance of power and the favourable conditions (or rather lack of conditions) for Spain's bailout package, as a Portuguese you do feel a bit Ugandan."
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All available articles from » Pedro Carvalho
Politiken - Denmark | Tuesday, 12. June 2012
In view of the new bailout plan for Spain's banks on the weekend, the left-liberal daily Politiken demands that a clear distinction be made between states and their banks: » more
In view of the new bailout plan for Spain's banks on the weekend, the left-liberal daily Politiken demands that a clear distinction be made between states and their banks: "The solution is the creation of a banking union within the EU countries. ... The goal is simple: no bank in Europe should be too big to fail. ... Through strict lending and liquidity requirements the banks should be made capable of looking after themselves. Then it would no longer be the taxpayers, but the owners in the form of shareholders, who must bear the losses when speculative deals go awry. A functioning banking system is of fundamental importance for Europe's economy and labour market. For that reason tighter supervision of banks should not be driven by a thirst for revenge, the desire for a planned economy or pure envy."
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Les Echos - France | Tuesday, 12. June 2012
With the 100 billion euro bailout plan for Spain's banks Europe is once more launching an emergency rescue operation. But the plan fails to address the underlying causes of the financial crisis, the liberal weekly business paper Les Echos writes: » more
With the 100 billion euro bailout plan for Spain's banks Europe is once more launching an emergency rescue operation. But the plan fails to address the underlying causes of the financial crisis, the liberal weekly business paper Les Echos writes: "The Union's solution is a stop-gap measure that doesn't solve the basic problem. For Spain, the basic problem includes the ailing financial health of certain autonomous regions and the very real risk that the national economy might not withstand the drastic efforts at budgetary restructuring undertaken in the past months. Two issues that could render the injection of additional European funds necessary in the not so distant future. The problem is, however, that as well as being ineffective in the long-term, this short-sighted policy is extremely costly for Europe. … The entire bill now stands at 500 billion euros. The result: the European fire brigade's ability to intervene is dwindling, even as the hour of truth approaches."
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All available articles from » François Vidal
Helsingin Sanomat - Finland | Tuesday, 12. June 2012
The bailout package for Spain is aimed at preventing the financial crisis from spreading throughout the entire Eurozone. The IMF warned on Monday that Finnish banks may also be affected. The liberal daily Helsingin Sanomat complains that expanding the bailout operations entails higher risks for small countries: » more
The bailout package for Spain is aimed at preventing the financial crisis from spreading throughout the entire Eurozone. The IMF warned on Monday that Finnish banks may also be affected. The liberal daily Helsingin Sanomat complains that expanding the bailout operations entails higher risks for small countries: "It is becoming increasingly clear that extending joint liability even further is not an option. It would be particularly dangerous for small Eurozone countries like Finland. The bailout for Spain highlights the fact that the big and small countries are treated differently. Spain was not subject to intervention as Ireland was, which applied for EU funds for the very same reason, nor has Spain been forced to implement its austerity programme as stringently as Belgium, for instance. Furthermore, if the banking and debt crises spread to larger countries, the small countries will be forced into the role of silent paymasters."
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De Volkskrant - Netherlands | Tuesday, 12. June 2012
The Dutch caretaker Prime Minister Mark Rutte has assured his country that the billions in aid for the Spanish banks will be repaid. That is dishonest, the left-liberal daily De Volkskrant counters: » more
The Dutch caretaker Prime Minister Mark Rutte has assured his country that the billions in aid for the Spanish banks will be repaid. That is dishonest, the left-liberal daily De Volkskrant counters: "A part of the billions that Europe is injecting into Greece, Portugal, Ireland and now Spain will never come back. With this loss the European politicians are preventing a chaotic development that could cause even worse economic fallout. Moreover an integrated Europe also has political goals. Politicians must have the courage to explain these arguments. They must sell Europe and not deceive the voters about the risks. But if they only point to their own wallets they are providing the Eurosceptics with extra ammunition. After all it's clear with Spain, too, that part of the promised 100 billion euros will never be repaid. Anyone who claims the contrary will lose the voters' trust. This will only undermine support for the bailout operations."
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All available articles from » Xander van Uffelen
Il Sole 24 Ore - Italy | Sunday, 10. June 2012
The bailout for the Spanish banking sector does not fulfill the precondition for saving the euro, writes the liberal-conservative business paper Il Sole 24 Ore, calling for immediate political integration: » more
The bailout for the Spanish banking sector does not fulfill the precondition for saving the euro, writes the liberal-conservative business paper Il Sole 24 Ore, calling for immediate political integration: "The 100 billion euros for the Spanish banks will come from the Eurozone's bailout fund. This means it is tax money from the partner countries. Consequently we are bearing fiscal co-responsibility without a fiscal union, accepting a financial interdependence without a banking union. … The Spanish crisis reveals the inadequacies of national solutions and the need for a political union. And this is needed now, not in 2020, as the major plan for fiscal, financial and political integration [the growth strategy Europe 2020] foresees, which is more a delusion than a genuine plan."
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All available articles from » Carlo Bastasin
Naftemporiki - Greece | Monday, 11. June 2012
The fact that Spain will receive an EU bailout without being forced to implement a tough austerity programme in exchange represents a great opportunity for Greece to renegotiate the terms of its own austerity, in the eyes of conservative business paper Naftemporiki: » more
The fact that Spain will receive an EU bailout without being forced to implement a tough austerity programme in exchange represents a great opportunity for Greece to renegotiate the terms of its own austerity, in the eyes of conservative business paper Naftemporiki: "Without doubt it is a very positive development for Greece. Our country can now also demand the changes needed to give it more time to implement the austerity measures and promote growth. Now the time has come for our country to negotiate sensibly and to resolutely present our creditors with an alternative plan. With threats to break off the austerity programme we will achieve nothing, but only accelerate the negative developments that are already visible. … Whether the country exits the Eurozone or remains inside it depends on us."
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Gazeta Wyborcza - Poland | Monday, 11. June 2012
The bailout for Spain may not be a cure-all but it's the best solution currently available for servicing the debts in the long term, writes the liberal daily Gazeta Wyborcza: » more
The bailout for Spain may not be a cure-all but it's the best solution currently available for servicing the debts in the long term, writes the liberal daily Gazeta Wyborcza: "The European help for Spanish banks won't resolve the fundamental problems with the Spanish economy, but it allows the Spanish government and ultimately the entire EU to buy the time they need for the reforms to finally produce results. If the Spanish economy begins to grow and become more competitive it can start reducing its debts. It is certainly in a better position than Greece. Spain is a large country and the fifth-largest economy in Europe. If it became insolvent this would lead to a financial catastrophe for the entire Eurozone. This is why the European politicians aren't hesitating to offer help. On the contrary: they are pressing the Spanish prime minister to accept it."
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El Mundo - Spain | Monday, 11. June 2012
The Spanish Prime Minister Mariano Rajoy said on Sunday that he had negotiated "favourable conditions" for the rescue of Spain's banks. The conservative daily El Mundo says it's up to the markets to interpret these words: » more
The Spanish Prime Minister Mariano Rajoy said on Sunday that he had negotiated "favourable conditions" for the rescue of Spain's banks. The conservative daily El Mundo says it's up to the markets to interpret these words: "Whether you call it a line of credit or a bailout, what matters in the end is how the financial markets interpret this agreement: as a guarantee that our financial system will be reformed or as the discrediting of yet another country in the Eurozone. … But resorting to the bailout should never be a source of satisfaction, much less triumphalism. The interest rates Spain will have to pay, although bearable - at around 1.8 billion euros a year - will oblige the government to tighten the austerity thumbscrew even further, even if postponing the deficit goal by a year gives us a reprieve. One thing is for sure: no one lends 100 billion euros without demanding anything in return."
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The Economist - United Kingdom | Monday, 11. June 2012
Although the Spanish government and its crisis-ridden banks were promised a bailout package of up to 100 billion euros on Saturday, the liberal business magazine The Economist doubts that the measure will suffice to rescue the country: » more
Although the Spanish government and its crisis-ridden banks were promised a bailout package of up to 100 billion euros on Saturday, the liberal business magazine The Economist doubts that the measure will suffice to rescue the country: "How will the bailout affect Spain's ability to borrow in the markets? Cleaning up the banking system would be a positive step but it is not enough on its own. The country's economy is expected to shrink this year and the next. The bank bailout is unlikely to reverse the downward momentum, even if it eases the country's credit crunch. If Greece leaves the euro, it is possible that Spain will find itself shut out of the markets."
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La Razón - Spain | Friday, 8. June 2012
Esperanza Aguirre, the conservative president of the region of Madrid, proposed on Wednesday that the number of members in the Madrid regional parliament be halved to cut costs. The conservative and centralist daily La Razón applauds the idea: » more
Esperanza Aguirre, the conservative president of the region of Madrid, proposed on Wednesday that the number of members in the Madrid regional parliament be halved to cut costs. The conservative and centralist daily La Razón applauds the idea: "The direct savings simply in terms of salaries are nothing to be sniffed at: three million euros in Madrid alone, and almost 33 million if the cuts were extended to all the autonomous regions. Factor in all the additional costs incurred by MPs and we can see that it adds up to a considerable sum in these difficult times. The proposal would of course require the support of the Socialists, and would entail a prolonged process including the reform of the regional constitutions. But beyond the red tape, Esperanza Aguirre has certainly addressed a taboo subject that no one can now ignore. The time has come to streamline the costly structure of autonomous regions that live beyond their means and to trim down the inflated parliamentary caste."
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Diário Económico - Portugal | Friday, 8. June 2012
Crisis-stricken Spain managed to raise 2.1 billion euros on the capital market on Thursday but had to pay more than six percent interest to attract investors. The fears over this problem child are prompting even stubborn German Chancellor Angela Merkel to relent, writes the business paper Diário Económico: » more
Crisis-stricken Spain managed to raise 2.1 billion euros on the capital market on Thursday but had to pay more than six percent interest to attract investors. The fears over this problem child are prompting even stubborn German Chancellor Angela Merkel to relent, writes the business paper Diário Económico: "Spain must reach deep into its pockets and it won't be able to keep this up in the long term. Nonetheless Madrid has heaved a sigh of relief. If this auction had failed, it would have had no choice but to call Merkel and ask for help. This humiliating step was avoided, but the situation remains precarious. The only ray of hope is that the otherwise so headstrong and stubborn Merkel, who so far has said no to everything like a little child, appears to have finally acknowledged the problem. All of a sudden she is calling for an integrated financial and fiscal union. She has even announced the presentation of a working plan at the EU summit at the end of June."
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All available articles from » Bruno Proença
Neue Zürcher Zeitung - Switzerland | Thursday, 7. June 2012
Europe could use the legislation for overcoming the banking crisis right away, writes the liberal-conservative daily Neue Zürcher Zeitung: » more
Europe could use the legislation for overcoming the banking crisis right away, writes the liberal-conservative daily Neue Zürcher Zeitung: "If the decision must be soon made about how to deal with ailing banks in Spain and other crisis countries, it would be best to act as if the new regulations were already in effect. State recapitalisation should only take place under strict conditions. And if the proud Spanish cannot bring themselves to liquidate their own banks and ask for external help, this should only take place by means of a bank subsidy programme. The strict conditions for this must be defined and monitored by experts from the European Central Bank and the Commission, as well as if needs be by the International Monetary Fund."
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Público - Portugal | Wednesday, 6. June 2012
After the Spanish government admitted on Tuesday that it was having trouble raising money on the financial markets the daily Público is pessimistic about the future: » more
After the Spanish government admitted on Tuesday that it was having trouble raising money on the financial markets the daily Público is pessimistic about the future: "The worst nightmare has come true. There seems to be no doubt any more that Spain will have to receive help. Too big to fail? Nowadays this no longer applies. The government has conceded that is has no choice but to seek Europe's support. According to the president of Santander bank, the Spanish banks need around 40 billion euros in additional capital in the short term. But far worse is the estimate of the Institute of International Finance, which fears that Spanish banks may be facing astronomic losses of up to 260 billion euros in the next two years. The EU and G7 reaffirmed on Monday that under no circumstances will they abandon Spain. But they must hurry. We need an end to the nightmare we are currently experiencing - and we need it tomorrow."
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Die Presse - Austria | Wednesday, 6. June 2012
Spain will have no choice but to seek help from the bailout fund, writes the liberal-conservative daily Die Presse. Unlike with Greece this rescue operation may actually be worthwhile for Europe, the newspaper surmises: » more
Spain will have no choice but to seek help from the bailout fund, writes the liberal-conservative daily Die Presse. Unlike with Greece this rescue operation may actually be worthwhile for Europe, the newspaper surmises: "The chances that the whole thing will work out are … much better than for instance in Greece. Because Spain has a strong industrial base, at least in the north-east of the country, and it has a government that is introducing major reforms (the labour market reform for example). It also has less of a public debt problem than a private debt problem. The banking woes that are weighing so heavily on the government's purse now are largely due to the fact that many jobless Spaniards can no longer pay the over-sized mortgages they took out during the boom. Leaping to the rescue with bailout money here will therefore pay off for Europe. Provided the Spanish themselves want this."
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All available articles from » Josef Urschitz
Süddeutsche Zeitung - Germany | Wednesday, 6. June 2012
In the discussion about solutions to the banking crisis in Spain the country's Prime Minister Mariano Rajoy for the first time spoke out in favour of introducing euro bonds on Tuesday in Madrid. But for this project to go ahead France and Germany would have to sacrifice their most precious treasures, the left-liberal daily Süddeutsche Zeitung explains: » more
In the discussion about solutions to the banking crisis in Spain the country's Prime Minister Mariano Rajoy for the first time spoke out in favour of introducing euro bonds on Tuesday in Madrid. But for this project to go ahead France and Germany would have to sacrifice their most precious treasures, the left-liberal daily Süddeutsche Zeitung explains: "Without stronger unity and democratisation in Europe … there should be no euro bonds for financing sovereign debt. Why should the Germans be liable for the debts of other states if they can't have a say in the fiscal, economic and structural policies of those states? To put it rather drastically: If the French have a 35-hour working week, retire at 60 and appoint tens of thousands of new civil servants, should the Germans have to pay for the resulting deficits? Neither the German constitutional court nor the German voters will go along with this. … If the euro and the unprecedented project of a united Europe are to be saved, its two strongest states must sacrifice their most precious assets: Germany its money and France its sovereignty."
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All available articles from » Stefan Ulrich
Dagens Nyheter - Sweden | Tuesday, 5. June 2012
Independent consultants are currently drawing up a report on the situation of the Spanish banking sector. Despite Spain's generally good crisis management the result of the report doesn't bode well for the country, the liberal daily Dagens Nyheter fears: » more
Independent consultants are currently drawing up a report on the situation of the Spanish banking sector. Despite Spain's generally good crisis management the result of the report doesn't bode well for the country, the liberal daily Dagens Nyheter fears: "If the decay in the banking sector could be effectively combated this would strengthen trust in the entire country. But the major concern is that the hole will turn out to be so large that, as in Ireland, it swallows up the entire state budget. This is why one rescue option is that the EU helps to pump capital into the Spanish banks. Spain however wants the money to go directly to the banks rather than the state in a bid to circumvent stringent EU rules. And for precisely this reason Germany is saying no. … Prime Minister Mariano Rajoy claims Spain is not on the brink of an apocalypse. If he solves the bank problems one could actually believe him."
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All available articles from » Gunnar Jonsson
Neue Zürcher Zeitung - Switzerland | Tuesday, 5. June 2012
Before Spain and Cyprus bail out their ailing banks themselves a direct recapitalisation of their banks though the euro bailout fund (ESM) could be a solution, the liberal-conservative daily Neue Zürcher Zeitung writes. But in that case clear rules would be needed: » more
Before Spain and Cyprus bail out their ailing banks themselves a direct recapitalisation of their banks though the euro bailout fund (ESM) could be a solution, the liberal-conservative daily Neue Zürcher Zeitung writes. But in that case clear rules would be needed: "The direct recapitalisation of banks through the ESM would help to prevent countries like Spain and Cyprus from diving headlong into fiscal and political uncertainty, and it would also prevent yields on sovereign bonds from rising any further. And the negative correlation between national debt and bank solvency would be severed. In addition this would be a targeted support that applied directly to the troubled banks. … As with other forms of state support, the EU Commission must be able to set conditions so as to avoid distortion of competition. Even better would be if the ESM could liquidate banks in return. That will become clear at the very latest when the money for recapitalisation runs out."
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All available articles from » Martin Lanz
Blog Delito de Opinião - Portugal | Monday, 4. June 2012
Although with José María Beneyto a high-ranking politician of Spain's ruling People's Party (PP) has for the first time openly discussed the possibility of Spain availing of the EU's bailout mechanism, things are still proceeding at a snail's pace in Europe, writes Luís Menezes Leitão in his blog Delito de Opinião: » more
Although with José María Beneyto a high-ranking politician of Spain's ruling People's Party (PP) has for the first time openly discussed the possibility of Spain availing of the EU's bailout mechanism, things are still proceeding at a snail's pace in Europe, writes Luís Menezes Leitão in his blog Delito de Opinião: "'Spain needs a bailout package. Who will foot the bill?', a German newspaper wrote recently. It seems the Germans are gradually losing their patience: EU countries are systematically demanding bailouts to save their flailing banks. The Spaniards are not the only ones to have apparently come to terms with the idea of a bailout, no. Now Cyprus has stepped on to the stage as the next candidate. Greece is not yet officially bankrupt, yet the debt crisis is already flooding over Europe like a tsunami. In any case, the inefficiency of the EU institutions remains devastating. With things proceeding in Europe at the current snail's pace, the euro is bound to fail."
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All available articles from » Luís Menezes Leitão
Cinco Días - Spain | Friday, 1. June 2012
Mario Draghi's call for a central bank supervisory authority shows that Spanish Prime Minister Mariano Rajoy's strategy may well be successful, the business paper Cinco Días writes jubilantly: » more
Mario Draghi's call for a central bank supervisory authority shows that Spanish Prime Minister Mariano Rajoy's strategy may well be successful, the business paper Cinco Días writes jubilantly: "The government's offensive in seeking a solution that dispels distrust regarding the Spanish banking system without landing Spain in the group of rescued economies alongside Ireland, Greece and Portugal appears to be bearing its first fruits. Up to now the government has insisted that the financial markets' persecution of Spain is not just a Spanish problem but a European one, and that the response must therefore also be European. This is why Spain has rejected a bailout that would probably have left the country permanently stigmatised and which would send it on a journey whose start is clear but whose end no one can foretell. This stubborn resistance - which has also not been adequately explained - appears to be finally softening the European Union's stance."
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Blog Ignacio Escolar - Spain | Thursday, 31. May 2012
The yields on Spanish bonds on Wednesday rose to their highest level since the introduction of the euro. Many fear that the EU will now intervene. Ignacio Escolar explains in his blog why seeking help from the bailout fund should be the last resort: » more
The yields on Spanish bonds on Wednesday rose to their highest level since the introduction of the euro. Many fear that the EU will now intervene. Ignacio Escolar explains in his blog why seeking help from the bailout fund should be the last resort: "The problem is that such a bailout would entail the kind of harsh conditions under which Greece, Ireland and Portugal are now suffering. A bailout means that the creditors make the political decisions. And the prime interest of the creditor is to recover his money, not to guarantee the future of the country's economy or the well-being of its population. This is why the bailout is the last resort. … In the best case the Rajoy government will try to hold out until July 1 until the European Stability Mechanism (ESM) takes effect. If a bailout should be necessary, the conditions would be better than under the EFSF fund."
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El Mundo - Spain | Wednesday, 30. May 2012
The head of the Spanish central bank, Miguel Ángel Fernández Ordóñez, announced on Tuesday that he would be stepping down from his post on June 10, a full month before his official term of office ends. Prime Minister Mariano Rajoy of the conservative People's Party forced his resignation to ameliorate the impact of a report written by the central bank chief that shows the government in an unflattering light, the conservative daily El Mundo writes, adding further perspectives: » more
The head of the Spanish central bank, Miguel Ángel Fernández Ordóñez, announced on Tuesday that he would be stepping down from his post on June 10, a full month before his official term of office ends. Prime Minister Mariano Rajoy of the conservative People's Party forced his resignation to ameliorate the impact of a report written by the central bank chief that shows the government in an unflattering light, the conservative daily El Mundo writes, adding further perspectives: "A few hours before Ordóñez threw in the towel, the People's Party used its absolute majority to ensure that the head of the central bank couldn't explain his position in parliament but only in a committee behind closed doors. … The affair involving the central bank chief is connected to the fact that the People's Party and the government failed to launch a parliamentary inquiry into the shabby management of Bankia, which led to the bank being nationalised. The People's Party had a motion for the establishment of a committee of inquiry struck from the agenda."
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Cinco Días - Spain | Tuesday, 29. May 2012
The Spanish Prime Minister Mariano Rajoy tried to dispel doubts about the stability of the Spanish banking sector in a speech on Monday. But there are growing indications that the beleaguered country will need the help of its European allies and the ECB, writes business paper Cinco Días: » more
The Spanish Prime Minister Mariano Rajoy tried to dispel doubts about the stability of the Spanish banking sector in a speech on Monday. But there are growing indications that the beleaguered country will need the help of its European allies and the ECB, writes business paper Cinco Días: "In government circles concern is spreading that the government's own measures come too late. If these fears penetrate to companies and the citizens they will represent an enormous obstacle to the trust that Spain so urgently needs. To restore that trust Mariano Rajoy is right to demand clear support for the euro and the Spanish economy from Europe. And the European Union is obliged to send a clear message to this effect, to show that Spain can rely on the firm backing of its allies and the joint central bank, the ECB, to overcome the debt crisis and complete the restructuring of its financial sector."
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El País - Spain | Tuesday, 22. May 2012
The Spanish Finance Ministry has charged management consultants Roland Berger and Oliver Wyman with assessing the state of the country's banks in a kind of stress test. The tests are due for completion by mid June, the ministry announced on Monday. But this new analysis will hardly boost credibility, the left-liberal daily El País fears: » more
The Spanish Finance Ministry has charged management consultants Roland Berger and Oliver Wyman with assessing the state of the country's banks in a kind of stress test. The tests are due for completion by mid June, the ministry announced on Monday. But this new analysis will hardly boost credibility, the left-liberal daily El País fears: "It's unlikely that Roland Berger and Oliver Wyman will achieve anything the European stress tests didn't accomplish. … Europe is pressuring the Spanish government to resolve the problem with the major bank Bankia and the economic team in the cabinet has lost its nerve. This stopgap policy doesn't work with the markets and the nationalisation of Bankia went wrong because it's not enough to know what to do, you need to know how to do it, too. The prime minister may deny that Europe is intervening but he will run out of options if the public debt keeps on rising and he continues to reject a pact with the opposition."
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Diário Económico - Portugal | Tuesday, 15. May 2012
Greece's exit from the Eurozone could drag Portugal, Ireland and Spain into the abyss, the liberal business paper Diário Económico fears: » more
Greece's exit from the Eurozone could drag Portugal, Ireland and Spain into the abyss, the liberal business paper Diário Económico fears: "By next month, Greece may already have left the Eurozone. The Germans seem to have had enough of the Greeks' stubbornness and are now willing to risk the split. They gladly pay to see this. And the central bankers, too, have already drawn up their emergency plans. … But no one can predict the far-reaching consequences if this Pandora's box is indeed opened. Will there be enough money to protect Portugal, Ireland and Spain? Or will we experience the domino effect that will put paid to the euro for good? Yesterday's plunging stock markets are proof of how jittery the markets are."
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All available articles from » Bruno Proença
La Vanguardia - Spain | Thursday, 10. May 2012
The Spanish state is taking over control of the crisis-stricken major bank Bankia, the government announced on Wednesday. The liberal daily La Vanguardia fears that the Spanish will rush to withdraw their money from the bank: » more
The Spanish state is taking over control of the crisis-stricken major bank Bankia, the government announced on Wednesday. The liberal daily La Vanguardia fears that the Spanish will rush to withdraw their money from the bank: "Things must be very bad when the leader of the Spanish opposition, Alfredo Pérez Rubalcaba, publicly states that he has his own savings in Bankia and he doesn't plan to withdraw a single euro because he has blind faith in the future of the insolvent bank. The socialist politician announced a few months ago that his assets amounted to almost a million euros. The fear of mass withdrawals of savings is spreading in our society like yet another phantom of the crisis. No one dares to talk openly about it, but everyone feels the panic. This is exactly how the Great Depression of 1929 began."
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All available articles from » Alfredo Abián
ABC - Spain | Tuesday, 8. May 2012
The director of the ailing Spanish bank Bankia resigned under pressure from the government on Monday. Prime Minister Mariano Rajoy plans to announce measures for the reform and recovery of this and other credit institutes on Friday. The conservative daily ABC sees government intervention as necessary: » more
The director of the ailing Spanish bank Bankia resigned under pressure from the government on Monday. Prime Minister Mariano Rajoy plans to announce measures for the reform and recovery of this and other credit institutes on Friday. The conservative daily ABC sees government intervention as necessary: "Reforming the Spanish banks is indispensable for freeing up the credit channels, the paralysis of which has plunged companies and households into a state of insolvency in recent years, leading to devastating unemployment. Politicians will have to face the no doubt increasingly negative reaction of the people with courage and a sense of responsibility, particularly since the operations aimed at rescuing the unstable financial sector will grow ever more expensive. Any financial support must be worthwhile for the state and be perceived as a sensible and targeted investment so that the credit taps are switched on once more in Spain and the reform of a sector so indispensable for recovery is completed once and for all."
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