Norbolsa| Iberdrola (IBE) announced a co-investment agreement with NBIM Iberian Reinfra (part of Norges Bank) for the joint development of a portfolio of renewable assets in Spain and Portugal. Iberdrola plans to sell 49% of another 500 MW for €250 million, bringing the joint portfolio of both firms to 1,800 MW, valued at around €1,800 million.
Jakob Suwalski and Giulia Branz (Scope Ratings) | Budget constraints faced by the autonomous regions make policy adjustments and new investments difficult. By the end of 2022, none of the regions met the 13% debt-to-GDP threshold in their fiscal framework, while the aggregate fiscal deficit worsened to 1.1% of GDP from 0.1% in 2021, contrasting with the reduction in the deficit of the general government, i.e. the central government plus…
Jakob Suwalski (Scope Ratings) | Prime Minister Pedro Sánchez’s decision to call early elections is potentially advantageous for Spain’s economic outlook insofar as it should prevent the government from losing six months of valuable time to determine long-term policy goals, even if it means forming a coalition or minority government. This timeframe allows for reforms to be implemented and the country’s fiscal and economic challenges to be addressed. However, the…
Fernando González Urbaneja | Quite a few (including two national newspapers) have applied the arithmetic template of Sunday’s results to a general election with a result that would be favourable to the grand coalition of the left/nationalists, headed and sponsored by Pedro Sánchez. In this case the PP would be the most voted party with 140 deputies (with VOX in retreat below 20 seats) while the PSOE would remain as…
Renta 4 | Adif has announced that it will start the second phase of the liberalisation of long-distance rail transport. The lines to be put out to tender are those to Murcia, Galicia, Extremadura, the Basque Country and Asturias. Renfe, Iryo, Ouigo, Eco Rail, Euskotren and FGC have already expressed interest in participating in this contract. One of the key points is that Adif will include in the tender the…
CdM | The Consumer Price Index (CPI) fell by 0.1% in May compared to the previous month and cut its year-on-year rate by nine tenths to 3.2%, its lowest level since July 2021, due to the moderation in food prices and lower fuel prices. With the fall in May, inflation has resumed its downward trend after the rise of eight tenths of a percentage point in April, which put it…
Fernando Gonzéz Urbaneja | The expectation of a very tough six-month election campaign weighed on Sánchez’s conscience throughout the evening after the evidence of Sunday’s results. This explains why bringing forward the elections is tactical and opportunistic (in political logic), and also why Feijóo began his speech in front of the cameras with the words: “the sooner the better”. Better for the incumbent who defends the results of November 2019,…
Bankinter : Fitch maintains Spain’s rating at A- with a stable outlook. Fitch has revised the expected growth for 2023 upwards to 1.9% year-on-year (+0.7pp) reflecting “buoyant recovery in tourism and rising public sector investment. This has offset the weakness in private consumption, which recorded a second consecutive quarterly decline”. It projects a reduction in Public Debt/GDP to 110.4% by December 2024, “driven mainly by nominal GDP growth while primary…
The President of the Government, Pedro Sánchez, has announced that the general election will be brought forward to next July 23 after the electoral defeat suffered this Sunday by the PSOE in the regional and municipal polls. The head of the Executive has assumed this Sunday’s electoral results “in first person” and his response is that this means “submitting the popular mandate to the popular will”, as he has stated…
Sánchez’s PSOE has insisted on cordon sanitaire not only with the far-right Vox, but even with the right-wing PP, with which it has refused to agree anything, while explaining the benefits of granting amnesty to the perpetrators of the attempted coup in Catalonia, of negotiating with the heirs of ETA, and with the populists of Podemos. Something that is incomprehensible to the vast majority of the electorate, even on the…