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In Europe 10th March 2014

Europe’s searching of an impossible balance

MADRID | By Julia Pastor | Expressions such as “two-speed Europe”, or “the gap between core and peripheral European countries” have been hitting the headlines for ages. The reality is that state members have never grown at the same pace and they are not likely to ever do so. Expectations about the end of crisis suggest that not all of them will exit at the same time; imbalances will continue one way or another. British economy could reach 2008 pre-recession growth peak next summer, while EU members like Italy, Croatia or Slovenia may see imbalances increase. Germany’s eagerness for saving and also investing out of Europe could postpone the problem.

In Europe 7th March 2014

Sleeping euro zone slowly awakens

MADRID | By Ofelia Marín-Lozano and The Corner team | Mario Draghi seemed satisfied on ECB’s Thursday meeting when calling the euro zone an “island of stability” on the grounds that the region has returned to growth levels of 2011. Old Europe’s awakening is a reality. Its GDP increased by an annualized 1.2% and its four main economies -Germany, France, Spain and Italy- also saw their individual growth figures go up. But the truth is the euro area is not back to 2008 pre-crisis levels nor is expected to get there until 2015. Europe has lost weight in the global scenario and apparently will continue to lose importance in the future, its GDP representing two thirds of U.S.’s by 2030.

In Europe 6th March 2014

Spain is no longer Europe’s sick man; it’s Italy’s turn

MADRID | By Francisco López | Investment banks and international funds are betting on buying Spanish Treasury’s stocks. In fact, Spain’s 10 years bond yielded under 3.40% on Wednesday, an unprecedented level since 2006. Interests of Italian debt stands even under that of Spanish, but Brussels’ study on the euro zone imbalances pointed Italy as the new sick man of Europe, basically due to its high public debt and the lack of reforms.

In Europe 6th March 2014

Today’s Talk Of The Market In Spain

MADRID | By Jaime Santisteban | Action from the ECB to favor growth and liquidity would be welcomed in the euro zone, where GDP boosted by 0.2 % in 4Q13 after dropping by -0.3% in the prior term. Meanwhile, Sacyr will contribute €30 more million in guarantees to wrap up agreement in Panama and airline Iberia gets to balance offer and demand. Finally, Ibex 35 appreciated by 1.96 % in February and by 1.99 % year-to-date, according to our exclusive market consensus Consenso del Mercado.

In Europe 6th March 2014

Reasons for the ECB not to make a move

MADRID | By The Corner team | Neither the recovery of euro zone leading PMI services index, nor the stability of low inflation levels or financial conditions favouring all the region, including peripheral countries, would justify new significant monetary stimulus from the European Central Bank in today’s meeting. Furthermore, there is not a consensus even within the ECB itself. “Just the continuing appreciation of the euro could make the ECB to take action”, Renta 4’s analysts in Madrid said earlier this morning. As regards central bank’s expectations on inflation up to 2016, Draghi will probably confirm they will continue to be firmly anchored in the medium term, even though levels in the short term are very low.

In Europe 5th March 2014

The Bizarre Twist of Spain’s Unemployment Data

MADRID | By Julia Pastor and Fernando G. Urbaneja | 1,949 unemployed less in Spain in February. Agreed that it is just a drop in the ocean of almost 6 million of jobless Spanish people, but the figure symbolizes an improvement. A tiny one, but positive at last. For the first time in four years, February’s affiliation to social security increased in 40,000 people, which means reaching a yearly positive rate of 0.4%. If we take a look at the number of affiliated, though, it makes a total of 16.12 million in Spain’s labour market, which surprisingly is one of the worst data in all XXI century.

In Europe 4th March 2014

Good Jobs Report in a Deeply Unemployed Spain

MADRID | By The Corner Team | The Spanish government celebrated February’s job report on Tuesday, with jobless rate fall by 1,949 people from the previous month to 4.81 million. Although figures show that the worst of the recession is already behind the curve, critics point out there is still a deep employment fragility, with job creation mainly happening in Andalousia’s temporary agricultural sector.

In Europe 3rd March 2014

Praising recovery in tailor-made Global Forum Spain

MADRID | By Julia Pastor | Bilbao’s Guggenheim Museum, architectural symbol of modernity and refurbishment, has been chosen to hold the international forum celebrating economic recovery. Among VIP guests: IMF’s head Christine Lagarde, OECD’s secretary Ángel Gurría and Eurogroup’s president Jeroen Dijsselbloem, along with four major international Spanish companies such as Inditex, Telefónica, BBVA and Ibedrola. However, social agents and NGOs who had a key role during the crisis supporting families in severe need have not been invited.

In Europe 27th February 2014

Greece, the troika and banks’ capital needs: A step-by-step guide

ATHENS | Op-ed by MacroPolis | [NOTE FROM THE EDITOR: This article was published ahead of Troika officials’ meeting with Bank of Greece (BoG) governor Giorgos Provopoulos on Wednesday]. As local lenders’ capital needs have shot to the top of the agenda in the current round of talks between Greece and its lenders and ahead of the troika’s arrival on Monday, it had been widely reported that Greek banks would need no more than 6 billion euros. However, there is now speculation that the troika believes this figure will be much higher. Here is our take on how this disagreement came about and what the outcome might be.

In Europe 27th February 2014

Spain cannot become Norway, Norway cannot become Spain- at least easily

OP-ED By Julia Pastor | Spain should turn its clocks back taking the time zone of their European counterparts since the country stands at the same range of Greenwich Mean Times that rules dayly life of the City of London and main financial places in Europe. This measure would push Spanish competitivity and help families to reconcile work and private life, according to Spanish government and also some anglosaxon media. Most of Spanish workers would be pleased to change working hours for leaving the office at 5 o’ clock like their neighbours. But will companies move on so easily?