MADRID | By Fernando G. Urbaneja | Hundreds of thousands of Catalonians marched for the third year in a row to claim their national sovereignty. The pro-independence way in Catalonia -which comes from a feeling more than a century old and from time to time strongly emerges to fight for its goal- is behind these demonstrations and tries to capitalize them.
FRANKFURT | By Lidia Conde | Martin Gornig is deputy head of department of Firms and Markets at the prestigious German Institute for Economic Research (DIW) in Berlin. The Institute conducts a working group that advises the Minister of Economy Sigmar Gabriel with the idea of increasing investments in Germany. Gornig and his team released a report last summer on the possibility of stimulating growth in Europe without changing the Stability Pact. The proposal of DIW is to immediately mobilize the necessary investments “to boost growth in countries in crisis and avoid a new recession in the eurozone.” As France and Italy are demanding, the Institute bets on growth but warns that it should not be at the expense of a debt increase
MADRID | By Álex García.
BRUSSELS | By Alexandre Mato | EU finance ministers are meeting in Milan on Friday to focus on Ireland, Greece and Cyprus exit plan to leave their IMF-EU financial assistance programs. The much-needed debate about economic stimulus and growth is not on the agenda, nor will be Scotland, despite the thorny economic implications of an eventual yes vote in the upcoming referendum.
MADRID | The Corner | Historically, German housing prices have remained flat, but since 2011 they have increased by 30% (a low figure when compared with +150% growth of the last 15 years in UK, France and Spain). Morgan Stanley analysts already see signs of recovery in the German residential sector, so the stocks exposed to it may be attractive. Moreover, housing prices in the UK have fallen significantly more than expected: 40% in August from 48% in July, instead of the 47% expected fall. It’s the lowest level of the past 12 months. According to Bankinter, this is a good sign “because it dissipates the fear of a possible housing bubble and reduces the BoE arguments to raise its main interest rate in advance.”
MADRID | By Julia Pastor/The Corner | Spain is at minimums in terms of EU representation. No seat at the ECB. No relevant post in the new Commission either. Centre-right politician from the ruling Popular Party (PP) Miguel Arias Cañete was appointed Europe’s climate action and energy policy commissioner (those portfolios are merged for the first time). But he will be reporting to vice president Alenka Bratushek. Bottom line, an interesting job without sufficient weight to compensate the loss of Competence. UK’s Jonathan Hill will shape the EU’s Financial policy, a move that aims to tend a bridge between Brussels and the City of London.
MADRID | Ana Fuentes | The first rise in Spain’s property prices since 2008 made big headlines on Monday. The government was proud to feed the press with some positive figures in order to illustrate its new recovery rethoric: 2Q housing prices increased by 0.8% on the year, compared with a 1.6% drop in annual terms in 1Q. But prices are going up… only for the few real estate actually being sold. What about the 600,000 properties in stock that banks are desperate to get rid of?
LONDON | By Víctor Jiménez | The financial services industry in Scotland is more than twice as large as that of the rest of the UK when compared to the gross domestic product. But where the unionism points out an unaffordable risk, some analysts see an opportunity. (Image: The first minister of Scotland, Alex Salmond by Robert Perry/EPA)
MADRID | The Corner | The pound fell around 1% against the euro on Monday and the dollar after the results of the first serious poll giving the victory to “yes” in the referendum on separation for Scotland. According to the latest YouGov poll published a day before, the support of Scottish independents would reach 51% vs 49% who are against if the undecided are excluded. UBS economist Paul Donovan commented about the risk of a narrow result in the polls in favor of remaining in the UK, similar to what happened in Quebec in 1995.
BRUSSELS | By Alexandre Mato | After displaying a substantial diplomacy effort during the summer, Spain may be losing the battle. Jeroem Dijsselbloem wants to keep himself as Eurogroup President with the goodwill of his goverment. At the boxing ring’s opposite corner is Spain’s candidate, Economy Minister Luis de Guindos. In front of the Europarliament Economic Committe on Thursday, Dijsselbloem insisted that his term will end in July next year and he is “determined to fulfill it”.