Oops, Angela did it again
Economist Luis Arroyo describes the dimensions of the troubles the Spanish banking system faces and concludes that Chancellor Angela Merkel has, again, made the wrong moves during the last EU summit.
In Europe
Ask Germany why: growth failure turns Euro zone instable
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.
Tobin Tax claims first 11 victims
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.
IMF growth forecast dampens Spain’s prospects
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.
The answer to the euro’s troubles is down under
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.
Brussels’ recipe for disaster
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.
The European temptation of taxing the rich
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.
“Germany’s position is excessively unclear”
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 could learn in Spain the right approach to future card payment policy
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.
Berlin steps on the Spanish accelerator towards a full bailout
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.