New generations favouring autonomy and independence are calling for a second transition: democratic or economic? Or a mix of both?
Articles by Luis Alcaide
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Spanish companies without any subsidies or bailouts have turned themselves around and transformed the former autarchy into a country decidely open to the overseas market.
Spain is the second country after Italy to benefit from the Juncker Plan, which ends in 2018. There are already 53 operations ongoing, with 4.5 billion euros financing from the EIB, which will facilitate the mobilisation of over 28 billion euros of total investment.
Spain has major access to the funds mobilised by the Juncker Plan. Many companies, like Gestamp and El Corte Inglés, are already benefitting with projects worth some 15 billion euros.
The PSOE “barons” rebellion against party leader Pedro Sanchez represents an internal power struggle. A national issue. Sanchez has been replaced by an interim executive committe headed by Javier Fernandez. Sanchez had a strategy worked out.
A favourable international situation can conceal Spain’s economy structural deficiencies. But if these were to disappear, the Spanish economy would have problems in balancing its public accounts and its financial position with the rest of the world.
MADRID | By Luis Alcaide | In an op-ed at Wall Street Journal on Thursday, New EU Vice Commissioner Jyrki Katainen pledged for stimulating growth in the eurozone by keeping the proper fiscal consolidation. But his comment could be put in a different way: stimulating growth by all means as the only way of achieving fiscal consolidation. Stimulating growth means that deflation, a price level increase inferior to 2% (the Stability Pact target) is a more pressing requirement than meeting the 3% public deficit in the short term.
MADRID | By Luis Alcaide | Globally, investment in relation to sales figures are at their lowest level in the last 22 years, even though there is a huge amount of liquidity all over the world. What is the problem then? Crystal clear: money is not flowing and therefore growth cannot be reactivated.
MADRID | By Luis Alcaide | Álvaro Rengifo, board director at Bankia, said in a interview with The Corner that Spanish banks were ahead of their European counterparts in acknowledging the weaknesses in their balance sheets.
MADRID | By Luis Alcaide via Capitalmadrid | A German economist recently questioned the role of Spanish exports to balance the country’s deficit, ignoring statistical facts. His pessimistic attitude shows an exaggerated interpretation of austerity. Meanwhile Angela Merkel is calling for patience and avoiding political responsibility in the construction of a fiscal and economic union.