Inflation in the euro area remains anchored at 2.4 percent, although differentials between countries are growing. Analysts at CaixaBank warn governments about raising VAT rates to increase income.
In the World
The European Commission accuses China of subsidising its production at home and selling at an uncompetitive low price in Europe. But these days, China is heavily investing in the Old Continent, and some euro zone governments like Germany favour a soft approach instead of fines.
After 44 years, this former Spanish colony feels tired of Teodoro Obiang’s dictatorship. New times will bring much needed updates to the country’s business sector. Spanish companies have an important role to play, says Donato Ndongo-Bidyogo.
Out of the markets’ spotlight, the Italian economy isn’t actually improving. Brussels must balance its ‘whenever in doubt apply a budget-cut’ policy: when GDP deterioration reaches too low a point, that makes urgent structural reforms implausible.
BARCELONA | The job market’s outlook for the coming months is not encouraging, analysts at CaixaBank Research indicate. But imbalances in labour costs across Europe are showing signs of correction. Structural measures could be already working.
Latest data on foreign tourist numbers bring some degree of relief to an economically hurting Spain. Levels of visits have this summer approached 2007 figures. Madrid must apply VAT increases with care on the sector.
In London and Madrid, NGO Save the Children has given a word of alert: the economic crisis is hitting hard those who are more vulnerable. Medicines and food aren’t as available as they should be to them.
Economist Luis Arroyo peeks at Japan’s monetary policy with some sense of vertigo. Deflation has become a real threat for the country’s recovery and should be fought sooner than later.
The French PMI fell by almost four points while Germany’s expanded. That’s bad news for the euro zone, whose core is in for trouble as an isolated German engine cannot pull its neighbours out of recession.
Two months before the US general elections, the Federal Reserve activates a package of expansionary monetary policy that will artificially inject life into the US economy. Carlos Díaz sees this is a vote for Obama.