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 Sanchez has been replaced by an interim executive committe headed by Javier Fernandez.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.
Articles by Luis Alcaide
About the Author
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.
MADRID | By Luis Alcaide | Having now the evidence of how Spain is successfully expanding its exports, the IMF should be able to tell what are competitive businesses from the onerous legacy of over-privileged labour practices that take place in some institutions.
While the US enjoy an economic confidence recovery, euro zone members have to put up with a failed mix of austerity measures and monetary expansion. The strategy must be changed since there are few signs of improvement in the real economy, none in the case of Spain.
The country resists. During the last three years, exports grew at almost the same pace than North America’s, around a 20%.
Spain needs technical but also political assistance to redress the hesitant and often deficient action of the current government. Even if backed by an overall majority in Parliament, the government seems unable to offer a solvent alternative.