In Spain

Give Spain fair targets, or damn the euro

“To avoid the euro zone spinning out of control, conditions imposed on Spain should be tailored to be fairly met. That inevitably involves further flexibility in its deficit goals,” says economist JP Marín Arrese.


The Spanish banking system holds some €108bn liquidity surplus

The first 3-year injection auction in November 2011 allowed the Spanish banking to get cheap and long-term funds, which substantially varied its liquidity position. According to AFI analysts, it also limited risks associated with restrictions to renew and issue bank debt and to attract sufficient retail funds to offset the fall in wholesale funding.


No Picture

Spain and the ever higher tax revenue bait

VALENCIA | Economist Ernest Sena reveals data of spending rates that tells a different tale about the Spanish regions: they aren’t as wild and rebels as it has been portrayed. But there is a common mistake to all public administrations, which have used budgets like propaganda tools.


How much is Catalonia owed?

How much does ‘different identity’ account in fiscal transfers between regions and their central government? Catalan president Artur Mas mixes tax data with sentimental issues and accusations of mistreatment, says Fernando G. Urbaneja, so a necessary dialogue becomes unnecessarily difficult.


No Picture

How party politics ruined Spain’s public sector in two charts

Only when private sector hiring has showed some muscle, public jobs have fallen as a percentage of the total employees in Spain. The country’s public sector needs a downsize, and this should be easy to achieve: free the public administration from party politics interests.


Spain needs growth to do its homework

MADRID | The weakness of Oliver Wyman’s Spanish banking test is similar to that of the national budget, economist JP Marín Arrese opines. Without growth, Spain could be rescued only to see risk premiums and credit costs decreasing. The threat of a depression would still loom.


Madrid-Barcelona doors still wide open

Something happened Friday September 28. Catalonia sold €2 billion in bonds and Spain’s Treasury minister announced that the regions rescue fund is now open for business to provide capital aid to Barcelona. The central government has a strong case to deactivate the Catalan conflict while reassuring markets with a restructuring plan of the state’s administration.


The Spanish donkey

Managing director at Re-Define, Sony Kapoor is a former investment banker and adviser to governments and international organizations. Kapoor argues that, unless Brussels change course, Spain will end up split between austerity and banking losses.