In Spain

spain deconfinement

European Aid Accounts For 11.35% Of Spanish GDP In 2019

Spain and Italy have been two of the leading countries in the European Recovery Fund race. Our country will receive 140 billion euros, of which 72.7 billion will be given in direct aid and the rest in loans. This is a figure equivalent to 11.3% of Spanish GDP in 2019. It is a balm for Spain’s public accounts that will be able to sustain the recovery with greater guarantees. The European agreement for the reconstruction fund will be decisive for presenting the 2021 General State Budget as soon as possible. It should be remembered that the current government continues to manage public accounts under the previous government’s budget. This is technically possible, but lacks political sense.


Spain property

The Fall In Home Sales In May Reflects The Effects Of Spain’s State Of Alarm

Bankia Estudios | Property transactions in the Spanish market have plummeted. Home sales fell sharply in May: only 22,394 transactions, the worst month of May in the available series since 2007, and less than half of the transactions recorded a year ago (48,351 in May 2019). In any event, the deterioration reflects the logical effects of the sector closing down due to the state of alarm. In the second half of the year, the reactivation of the economy, the labour market and, above all, family income will determine the behaviour of demand.


Nadia Lagarde

What Happens Without Nadia Calviño?

Joan Tapia (Barcelona) | Spain has lost out in the Eurogroup, but only by 10 to 9 and with the vote in favour of the powerful Franco-German axis. It is an honourable defeat that indicates our limitations. Some claim that the result is due to the fact Spain has a government with communist participation, something anomalous in Europe. I think that it is a warning from the medium-sized countries to the Franco-German axis to take them more into account. Spain is not gaining influence in Europe, but it will have little impact on economic policy.


companies general

Just 6% Of Spanish Firms Generated 80% Of The New Jobs Created In Recent Years

Just 6% of Spanish companies generated 80% of the new jobs created in the recent years, specifically in the period 2004-2017. These firms were characterised by their rapid growth, according to the study ‘Business dynamics in Spain and digitalization: challenges in the face of the new crisis of COVID-19’. The study was published this Wednesday by the Ramón Areces Foundation and the Valencian Institute of Economic Research (IVIE).


Renewablesss

Spain’s New Renewables Auctions Will Allow For Bids On Energy To Be Supplied Or Combined With Installed Power

Spain’s Cabinet has authorised the processing of the emergency decrees to regulate the procedure for auctions and access and connection to the energy transmission networks. These decrees will provide legal certainty for the Spanish energy framework, preparing it for the installation of some 60 GW of renewables in the next decade. Up until now, the product auctioned has been the installed capacity, subject to a minimum and maximum in order to receive the return per operation. 


congreso diputados1

The State To Enter Spanish Companies Via The Purchase Of Shares, Debt Or Other Convertible Instruments

The fund worth €10 Bn will rescue companies with solvency problems such as airlines and hotel chains damaged by Covid-19. It will be managed by the State Society of Industrial Participations (SEPI) and will allow the state to temporarily enter, for 6 or 7 years, the capital of private firms This will be done with the purchase of shares, debt or any other instrument convertible into capital. If after that time the company needs additional support, it will need a restructuring plan which will be transferred to Europe.



OFICINA Empleo Spain

Temporary Layoffs Gradually Lifted In Spain: 1.56 M Workers Have Taken Up Their jobs, 1.8 M Still On Hold

The recovery in employment in Spain is proving to be a struggle at best, and a mirage at worst. The data shows that the trend in unemployment growth is slowing: unemployed in June rose by 5,100 people compared to 26,573 the previous month, 282,891 in April and 302,265 people in March. However, this month of June was the worst since 2008. The figure continues to exclude workers who are suspended from work or whose hours have been reduced as a result of a temporary layoff scheme.


Spain ratings

Spain Ends 1H20 On The Verge Of Recession With Structural Reforms And Fiscal Changes On the Horizon

Yesterday, it was confirmed the historical collapse of Spanish GDP: it declined 5.2% until March due to Covid-19, its biggest quarterly fall recorded in the historical series. With a contraction of the activivity in the second quarter greater than that in the first taken for granted, Spain is facing a recession. In this context, the Bank of Spain argues that the only way to bring the country’s accounts back under control after the pandemic will be the combination of fiscal adjustment and structural reforms. 


renewables toreras

BofA: “We stay overweight France, Spain and Italy.”

BofA Global Research | We stay overweight France, Spain and Italy, as they should benefit from a continued rebound in PMIs. We raise the UK to marketweight after the recent undershoot. We remain marketweight Germany, as it discounts much good news. We are underweight Switzerland, as it tends to underperform when improving growth momentum lifts bond yields.