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Spanish economy 19th February 2021

Spain’s Public Debt Reaches €1.311 Tr In 2020 (117% Of GDP), A Figure Not Seen Since 1902

Link Securities | Spain’s public debt increased in 2020 by 122.4 billion euros, which takes this item at 1.311 billion euros at the end of the fiscal year, according to data from the Bank of Spain. In terms of Gross Domestic Product, Spanish public debt would have finished last year at 117%, a ratio not reached since 1902 due to the consequences of the Cuban War and the global crisis in agricultural prices.

Pedro mascarilla españita

Spanish economy 18th February 2021

The Reforms That Spain Needs For Facilitating Recovery After Historic Economic Contraction

Scope Ratings | The government is prioritising growth over budgetary discipline, which for the moment is appropriate given the large output gap. Spain will run a wide budget deficit for some time. For 2021, the authorities forecast a deficit of 7.7% of GDP, which is based on a rather optimistic economic scenario. Thus, should growth be weaker than expected in the coming years, Spain’s public finances would deteriorate further – a risk captured with Scope’s Negative Outlook.

Acciona hydrogen

Ibex, Markets, Spanish economy 18th February 2021

Acciona Allies With Plug Power To Take 20% Of The Green Hydrogen Market In The Iberian Peninsula

The group has reached an agreement with U.S.-based Plug Power to create a 50/50 subsidiary to develop green hydrogen projects in Spain and Portugal, hydrogen produced from renewable electricity. The companies aim to achieve a 20% market share by 2030, thanks to an initially planned €2 Bn investment. Plug Power will be the preferred supplier of electrolyzer technology to the new venture, while Acciona will be the preferred supplier of clean electricity.

Palacio de la Bolsa de Madrid

Spanish economy 18th February 2021

Spain’s Major Listed Companies To Ask Urgent Legislation For Virtual Shareholders’ Meetings

Fernando Rodríguez | The season of annual shareholders’ meetings is just around the corner and Spain’s major listed companies are urging the Government to legislate with the utmost urgency so that they can hold virtual shareholders’ meetings with full legal coverage. “We don’t have the leeway we had last year, which was justified by the Covid19 pandemic, and there is a risk that the decisions made at the meetings could be challenged,” sources close to this initiative, which is supported by at least forty companies, told Consenso del Mercado.

Bipartisanship

Spanish economy, Spanish Politics 18th February 2021

The Resistance Of The Imperfect Bipartisanship In Spain

Between 2014 (European elections) and the last general elections (December 2019) there have been six elections in which the sum of the bipartisanship oscillated between 45 and 55%. With an electoral support of around 30% of the votes (for the most voted party) and around 50% of the sum of the two parties (compared to more than 70% during the previous forty years) both parties continue to be essential to govern. Both still have a social and electoral base to survive despite their evident management errors.

nadia calvino bruselas

Spanish economy 16th February 2021

The Spanish Government Will Approve In March A Package Of Direct Aid To Companies

For months, and from different sides of the spectrum, including the government’s own partner Podemos, there has been a demand for the design of a direct aid package aimed at those companies whose viability is at risk. Podemos’ proposal includes a fund with an initial contribution of €8 Bn. It is not known if the amount of the direct aid package will be adjusted to this proposition or not, but at least there will be aid.

heathrow arrivals

Ibex, Markets, Spanish economy 15th February 2021

Ferrovial Negotiates An Urgent Plan With The UK To Save Heathrow

Heathrow Airport Limited is controlled by a consortium led by Ferrovial with a 25% stake, Qatar Investment (20% of the capital), Caisse du Quebec (12.62%) and Singapore’s GIC fund (11.2%). The partners have already activated new urgent lines of financing for a total of 850 million euros. Heathrow wants to increase prices, and the regulatory body (CAA) is receptive to the request. But it wants the dividend cut to shareholders to be extended.

Catalonia PSC wins

Spanish economy 15th February 2021

The Catalan Dilemma Is Not Yet Solved

Before the pandemic, practically everything in Spain, economy, politics, social coexistence, revolved around the Catalan dilemma. It was expected that elections in Catalonia would clarify the region’s political future and bring some stability to the Spanish political scene. However, the results of the regional elections held yesterday failed to clear up the doubts of the last decade. The most voted party was the Socialist, but the sum of the Catalan separatist parties has obtained enough seats to form a government.

paro empleo

Spanish economy, Spanish Politics 15th February 2021

Employment In Spain Holds Up This time, But Duality In The Labour Market Continues To Wreak Havoc

Josep Mestres Domènech (CaixaBank Research)| In times of crisis, the reduction in employment traditionally occurred in Spain through a significant destruction of jobs, while in periods of expansion job creation was rapid. This has not been the case in this crisis. For the first time, the declines in GDP have been accompanied by a much smaller reduction in employment. This is not only due to the unique nature of this crisis, which originated in the health sphere, but also due to a very different response from economic policy.