By Juan Pedro Marín Arrese, in Madrid | The European Commission has developed a masterful command in saying things it does not believe in. The latest growth forecasts stand as an example of this hollow rhetoric. Reading the small print it seems clear the Commission sticks to obviousness in conceding we are stuck in a sharp downturn. When it comes to guessing what might lie on stock for the rest of…
MADRID | According to a report by the market and opinion research firm TNS Sofres about the image of France in the world, for 72% of the French “Spain is the country they like the most.” The study, released by the French Embassy in Spain, also reveals that 66% of Spaniards are drawn to the Gallic country, 76% rate the bilateral relations as ‘excellent’ and 61% believe that these have improved…
MADRID | Mario Monti explained in an interview to the daily newspaper El Mundo that the Spanish labour reform ‘goes in the direction’ of the one he wishes to implement in his country. The Italian prime minister also comments on the reforms his government has carried out in Italy, such as the pension reform and he praises the Italian people’s ‘mature attitude’ when “it came time to accepting the sacrifices that…
By Julia Pastor, in Madrid | Perhaps the British households in economic troubles because of the crisis and the unemployment impact are mildly familiar with the words eviction or lieu of payment, but more than 150.000 Spanish families have already been evicted and another 330.000 are in the same process. They are destitute families, with all their members unemployed and no additional income, who cannot face up paying their mortgage. On…
By Juan Pedro Marín Arrese, in Madrid | You don’t usually pick up the most suitable moment to undertake a widespread reshuffle of ill-functioning markets. Stiff political and social resistance leads to abandon any plan or hope to do it. As shelving problems don’t settle them, reforms are only accepted under the pressing need to redress a desperate situation. As a result, measures tend to inflict more damage and reap fewer…
MADRID | Spain reached for the first time a surplus in its trade balance with the euro zone in 2011. Exports to the European Economic and Monetary Union grew 9.6%, almost three points more than imports. The weakness of the domestic demand explains the attainment of such a historic achievement, explained the business daily Cinco Días. Four long years of economic crisis have some positive aspects. According to data released…
By Julia Pastor, in Madrid | Spain’s government is about to attack another of the ills afflicting the country’s economy: the debt that regional governments and municipalities owe to their service providers. The minister of Finance Cristóbal Montoro announced Tuesday that the cabinet will finalise a macro financial operation to cancel this debt, which has reached the €35bn level and has been suffocating Spanish SMEs’ liquidity for years (SMEs’ weight…
The European Commission on Wednesday gave the green light to the state rescue operation of Hungarian bank FHB. A recapitalisation of HUF 30 billion (app. €100 million) and a loan under the Hungarian liquidity scheme of approximately HUF 120 billion (approximately €400 million) for the Hungarian bank FHB were put in place in accordance to EU state aid framework, the Commission ruled. After an in-depth investigation, the Commission concluded that the…
The letter that the heads of government of twelve EU countries, including Spain’s Mariano Rajoy, sent to Brussels presented an eight point programme to promote economic growth in the European Union. It was addressed to the president of the European Council Herman Van Rompuy and that of the Commission, Jose Manuel Durao Barroso, yet was not signed by either Germany or France, the two main economies of the euro zone…
By Julia Pastor, in Madrid.- Since last week, Iceland debt is no longer rated as junk bond. Fitch raised the country’s rating by one notch, from BB+ to BBB-. This fact has sparked a significant number of comments about whether the way in which Iceland has managed the economic crisis is a model for other European countries, particularly the peripherals. It is undeniable that the actions taken by the so far Iceland…