Luis Alcaide (Capital Madrid) | Spanish exports increased in June by 29.3% when compared with May and even higher when compared with March. However, in year-on-year terms, foreign sales fell by 9.2% compared with June 2019. We are still far from the figures before the coronavirus hit, but they mark an improvement when compared to the ones of the three months prior to June 2020, the period of confinement. On the other hand, in terms of purchases from the rest of the world, imports are also up on the previous months, confirming a recovery in demand. However, in year-on-year terms, imports fell by 20%. So in this import-export game, Spain’s traditional trade deficit turned into surplus in June.
Luis Alcaide | Spanish government with its parliamentary minority has administered, but without exposing itself to dangerous risks difficult. It has pushed its budget, with its own proposals, knowing it will not be approved. But as Groucho Marx said “here is another one”. The increase in the minimum wage has already shown their socialist colours. We need to continue to take care of the economy. It is not that easy, but not that hard either.
Luis Alcaide | Pedro Sánchez will be monitored from every corner to see if he can count on the collaboration of a Spanish administration more independent than in the past. He will have to manage budgetary imbalances and growth of public debt. Furthermre, his fellow citizens rate corruption, after unemployment, their greatest concern.
New generations favouring autonomy and independence are calling for a second transition: democratic or economic? Or a mix of both?
Spanish companies without any subsidies or bailouts have turned themselves around and transformed the former autarchy into a country decidely open to the overseas market.
Spain is the second country after Italy to benefit from the Juncker Plan, which ends in 2018. There are already 53 operations ongoing, with 4.5 billion euros financing from the EIB, which will facilitate the mobilisation of over 28 billion euros of total investment.
Spain has major access to the funds mobilised by the Juncker Plan. Many companies, like Gestamp and El Corte Inglés, are already benefitting with projects worth some 15 billion euros.
The PSOE “barons” rebellion against party leader Pedro Sanchez represents an internal power struggle. A national issue. Sanchez has been replaced by an interim executive committe headed by Javier Fernandez. Sanchez had a strategy worked out.
A favourable international situation can conceal Spain’s economy structural deficiencies. But if these were to disappear, the Spanish economy would have problems in balancing its public accounts and its financial position with the rest of the world.