MADRID | By Ana Fuentes | Under a strong pressure after the scandal of illegal donations to the Popular Party, Spanish PM Mariano Rajoy will try to spend his summer holidays away from the public eye. Even if the economy is doing better and the Bank of Spain sees the end of the recession coming, citizens are austerity-wary and the political tension has not been eased at all.
MADRID | The new antifraud law in Spain is bringing surprises on the table: more than 130,000 tax payers have declared assets held in foreign countries with an estimated total value of 87.7 billion euros, more than the double of what Spanish Treasury estimated. The penalty is 150% of the tax due.
MADRID | By David Fernández | Foreign investors are showing a sudden interest in assets made in Spain due to, among others, central bank’s last data, Europe’s decision to delay the deficit commitment by two years and international factors such as second-round monetary helicopter launched by the Bank of Japan. Will this trend vanish?
MADRID | The European Central Bank must change course, too, so market credit costs drop to a range at which peripheral governments will not suffer as much as they do now. Brussels and Berlin may stubbornly be strangling the eurozone because they cannot see the wood from the trees.
MADRID | Spain has proven that it can make economic adjustments and it is competitive, laying the groundwork for foreign direct investment (FDI) confidence to remain upbeat on the country’s economic prospects.
During the rest of the year, the Ibex should improve its performance against the SMC, according to BNP Paribas broker.
MADRID | Two German economic heavyweights are stirring the debate about the Spanish recovery: IFO President Hans-Werner Sinn, who recently said that “Spain will suffer 10 more years of crisis and an internal devaluation of 30%”, and Bundesbank Chairman’s, who thinks the crisis will last five more years. Both of them were as clear and firm as Germans usually are when speaking about Southern Europe.
Spanish economy’s agents have prioritised the reduction of their debt burden, and businesses’ savings have increased by 6.1 percent.