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In Europe 4th December 2014

The new ‘growth package’ from the EU

By Peter Lundgreen via Caixin | Last week, China’s biggest export destination, the European Union established a new growth package. The desired size of a new investment fund is 315 billion euros, and it will be called the European Fund for Strategic Investments (EFSI). During a period of three years, new investments financed by the fund are expected to lift annual GDP growth in the EU by 0.7 percentage points. The calculations from the EU show that the package can create between 1 million and 1.3 million new jobs.

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In Europe 19th November 2014

The EU is a union of rules, not a union of force

The European Union (EU) is a group of sovereign states, who are sovereign in that they are entirely free to leave the EU. This freedom to leave means the EU is not a “super state.” There is no coercive force — and no EU army — to make Britain or any other country remain in the union. Britain enjoys a freedom, within the EU, that colonies did not enjoy within the British or other European empires. Britain is, therefore, entirely within its rights in considering the option of leaving the EU, although that does not mean such a course would be wise.

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Markets 5th November 2014

EU’s low growth hits financials

MADRID | By JP Marín Arrese | Central banks all over Europe bombastically hailed the stress tests results as solid evidence the banking system enjoyed enviable health. Their diagnosis utterly failed to impress the markets. Ten days later,  financials are plunging to fresh lows as low growth rates signify dire prospects ahead. Investors feel increasingly uneasy faced with dwarfish interest rates and dwindling intermediary receipts, leading to chronic underperformance and under-sized profits. Many fear that an inability to raise their own funds to plug gaps in their balance sheets might weigh on mounting impairment, sending shivers down the spine. Banks may face rough times ahead should deflationary bouts keep the European economy close to stagnation. 

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World economy 7th September 2014

In depth- Russia: sanctions for peace

BRUSSELS | By Jacobo de Regoyos | Europe’s 28 have unanimously requested at their recent summit to the Commission to prepare new economic sanctions against Russia, which will be triggered if the tension in Eastern Ukraine is not reduced. “Further significant steps,” is written on the statement. But nobody really knows how far can go the difficult consensus knitting machine that the European Union has become, divided between the dread to Russia felt by Eastern countries and the economic interests that grip the continental West. (Note from the editor: The cartoon above was published in Chinese official newspaper China Daily).

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In Europe 3rd September 2014

Air pollution: Time for clean air lobbying

MADRID | The Corner | Around 400,000 people die prematurely in the EU due to air pollution-related problems, costing health systems around €330 billion and €940 billion. Brussels-based non profit EBB (European Biodiesel Board), lobbying for this type of fuel, measured air pollution levels in different areas of the city: they were between 60 and 120 times above considered clean standards. Schadenfreude fans: last year Beijing residents suffered 40 times the recommended maximum exposure limit set by the World Health Organization.

 

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Spanish economy 26th August 2014

Merkel supports Luis de Guindos to be the next President of the Eurogroup

MADRID |The Corner | After a meeting between Mariano Rajoy and Angela Merkel in Santiago de Compostela, the German chancellor gave her support to the candidature of the Spanish Economy Minister, Luis de Guindos, to succeed Jeroen Dijsselbloem as President of the Eurogroup. As Barclays analysts comment, “with Italy’s and France’s leftwing governments and UK in or out of the EU, Spain is now a more attractive partner.” Regarding Germany, Angela Merkel recognised that the crisis in Ukraine is damaging the German economy. Nevertheless, Merkel affirmed that she forecasts a good annual growth if nothing dramatic happens.

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Spanish economy 21st August 2014

Spain registers the highest EU construction growth in 2Q

MADRID | The Corner | Spain was the EU28 member state with the highest increase in the production in construction during the 2Q, with an increase by 7.0% YoY, according to first estimates from Eurostat. Moreover, Spain was the fourth country in the EU28 with the biggest increase in the production in June, with a growth of 6.8%. However, the construction experienced a decline of 2.9% in June in comparison to May, which represents the second biggest monthly decline of this variable among the EU28 member states. In June compared with May 2014, seasonally adjusted production in the construction sector fell by 0.7% in the euro area and by 0.3% in the EU28.

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Companies 19th August 2014

Spanish Técnicas Reunidas awarded first contract by oil giant Petronas

MADRID | The Corner | Petroliam Nasional Berhad (PETRONAS) of Malaysia has awarded to Técnicas Reunidas a contract for the engineering, procurement, construction, and commissioning (EPCC) of all hydrotreating units, interconnections and torch of the Refinery and Petrochemical Integrated Development Project (RAPID) in Pengerang.