MADRID | By Julia Pastor | What is good for Spain is good for Europe. Certainly, while recognising that the country “has pulled back from severe problems in some parts of its banking sector, thanks to its reform and policy actions,” the European authorities’ fifth review does not omit the fact that this has been achieved “with the support of the euro area and broader European initiatives.”
MADRID | By Luis Martí | The European banking union project received a remarkable boost last December, even if a major chapter, the bank resolution fund, had to conform to German requirements and stay on a national basis. This part of the agreement is a moot point, and Southern countries should have raised their voices and taken a firm stand against, as Münchau also wrote, no matter the delay inflicted to the working agenda of the eurogroup.
MADRID | By Julia Pastor | Christine Lagarde, Managing Director of the International Monetary Fund and Mario Draghi ECB’s president were in the same Davos panel on Saturday. Both talked about signs of recovery across the world and the euro zone. However, as she said that deflation potential risks in the euro zone must not be ignored, he minimized danger and insisted once more that the bank is prepared to deploy a QE’s policy if deflation appeared.
MADRID | By Julia Pastor | The same day Spanish banking system credit line was officially cancelled, the country issued a record 10-year bond amounting €10 bn. The syndicated bond sale was strongly oversubscribed by almost four times the sum on offer, just beaten by €44bm of EFSF first issue.
ATHENS|By Marios Zachariadis via Macropolis| The apparently fast adjustment of the Cypriot economy and the private (non-bank related) sector in particular, has helped facilitate a smaller than anticipated drop in consumption and GDP as the impact of reduced nominal salaries on consumption has been somewhat alleviated by falling prices, along with the use of past savings.
MADRID | By Álex García.
LONDON | By Fabrice Montagne at Barclays | Recent economic data suggest that Greece’s economy is improving. While this is not enough to change our current cautious growth forecasts, it does provide some support for the government as it enters a very difficult period, having assumed the EU presidency, and faces troika negotiations and domestic political opposition.
MADRID | By Julia Pastor | France just started to go through its new year’s checklist. President Hollande announced last week budgetary cuts of €50 billion for 2015-2017, in addition to those €15bn revealed in September. The country urgently needs to increase revenues and it could do it via the sale of state-owned companies stakes such as a French and European reference like Airbus.
MADRID | By Jaime Fernández Santisteban | After months at the centre of controversy, Spain is making headlines about recovery and everyone seems to be bullish on the country. Spain is almost back to pre-crisis levels, says IMF’s Lagarde. But is it? What has changed then? Marta Soria and Rebeca Gimeno are a couple of journalist-economists behind Economía en dos tardes, a blog bringing economy and business closer to people. They shared with The Corner TV their outlook for the year that is just beginning.