“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 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.
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 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.
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.
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.
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.
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.
JP Morgan analysts used a wrong classification when accounting loans given by Banco Mare Nostrum to corporations and small and medium companies. Three days after its first report, the investment bank has now rectified.
MADRID | Fernando Barciela interviews Baron de Ley CEO Eduardo Santos-Ruiz, who joins the growing demand among Spanish entrepreneurs, too, for a rationalisation of the regional administrations. It’s time for the state to use its scissors on itself.