Spain

Spain: An Example Of Successful Keynesian Policy?

The thesis is reasonable and well-known: greater growth, lower deficit. But what happened in 2015 seems to corroborate another idea: a larger deficit (-5%) fuels the biggest growth in Europe (3.2%). So the government unilaterally raises the 2016 deficit target from 2.8% to 3.6%, while Brussels is going for 3.9%.




The Melancholy Of Two Wasted Years

Spain depends on Europe, but in a rather odd way, because Europe is a carcass without a head and without any initiative. Europe has left us in doubt over our deficit because we were in an electoral period. And this brutal wear and tear, which has not been good for us, on the contrary, has not ended. After June 27, whatever happens, the government will be even weaker, whichever it is.


The consequences of a public deficit which is out of control

Last year’s public deficit exceeded all the predictions of both the government and the experts: it ended up at 5.16%, one full percentage point (almost 10 billion euros) above the target set by Brussels. This huge deviation will have serious consequences and sanctions from Brussels cannot be ruled out.

O2 sale, LatAm weakness are challenges for new Telefonica chairman

If Telefonica approves the choice of  current CEO José María Álvarez-Pallete to replace Cesar Alierta as Chairman, he will be the first Executive Chairman not to be appointed by the Spanish government. Alvarez-Pallete will face two main challenges: securing European Commission approval for the sale of O2 and dealing with the weakness of the LatAm economies, particularly Brazil.



Spanish Banks Likely to Avoid the “Swiss rate” scenario

UBS | President Draghi surprised the market positively, both in terms of the magnitude of some of the expected moves (QE extension in the upper end of the range) and also implementing new measures (acquisition of non-financial IG bonds in its asset purchases, and new targeted TLTRO). For (retail) banks like the Spanish, the balance of ECB’s actions has to be considered as positive, especially if trends seen in the swap market are confirmed in Euribor fixings.


Abengoa's accounting

Abengoa Is Saved By Its Creditor Banks

The demise of Abengoa, the Spanish engineering and renewable energy firm, would have been a massive blow for its creditor banks. So the government and the banks have been working on a solution since the company entered pre-insolvency proceedings. The deal agreed this week hands over the majority of Abengoa’s capital to its creditors.


Gamesa's target price

Competition Issues Main Problems For Siemens-Gamesa Deal

Siemens has identified three key points which could delay or even thwart the deal it is negotiating with Spanish firm Gamesa. The most important is resolving the problem of eliminating competition in the industry, which a tie-up between the two companies would provoke. This issue could cause the transaction to be blocked.