Germany isn’t just refusing to play the paymaster’s role, it effectively is barring the way towards a banking and a true economic union for the euro zone. The upcoming summit could be one more missed chance to fix the common currency area.
Past performance casts doubts over what European governments will achieve by implementing the Tobin Tax on financial transactions. Funding costs for banks and their clients, though, will surely increase.
Investors’ hoping that Madrid successfully implements the 2013 Budget were left wondering again after the IMF announced its gloomy expectations. For economist JP Marín Arrese, Spain’s euro partners will make a mistake if they keep pushing the country into the same line Greece, Ireland and Portugal have been forced to walk.
Don’t worry about the external deficit. The Spanish economy needs permanent capital inflows and that isn’t really a problem when the country can generate income to cover interests and dividends. Look at Australia, suggests economist Luis Arroyo.
Behind the latest good news about better external deficit figures in Spain and the US, nominal GDP records demonstrate that Brussels is wrong: it isn’t time for savings when income drops dramatically. Spain needs credit to grow and repay its debts.
Something common to all euro zone countries is the habitual use of tax avoidance strategies by the wealthy. Ever higher tax rates on large fortunes can now be popular among ordinary taxpayers, but could do more harm to the economy than good, believes Carlos Díaz Guell.
It will not look good for the political party in office in Madrid, analyst at Self Bank Victoria Torre told Julia Pastor, but requiring a rescue is only a matter of when. And the Spanish government wouldn’t be the only one to blame.
STRASBOURG| A message to the European Parliament from Enrique Calvet: what you wish for can harm credit card customers with higher fees. Calvet is member of the Consultative Commission on Industrial Change at the European Economic and Social Committee.
Why the German government believes it should force Spain into a national rescue like Greece, Ireland and Portugal did before is a puzzling question for Madrid. The markets are not quite sure, either.
BARCELONA | Analysts at CaixaBank welcome the European Central Bank’s decision of propping up state debt by moderating its cost in the markets. It will give the euro zone room to progress in its integration.