MADRID | The Spanish government faces an uncomfortable dichotomy, says Carlos Díaz Güell: it either prolongs the fiscal measures taken in 2011 or lets the public deficit grow even further.
Klaus Hafemann, director of the Cologne Institute for Economic Research: “Almost no German likes the idea that the ECB could expand its monetary-policy mandate to actively finance states. But sometimes you have to do things you do not like.”
The prime ministers of France and Portugal announce further adjustments for 2013, as Spain did before. But, analysts at CaixaBank note, the lack of detail isn’t encouraging for investors or other euro zone partners, despite the support the ECB promises.
There are as many ways to stop one more country to follow Greece’s steps as European politicians’ excuses not to act upon them. Economist Luis Arroyo names them one by one.
Are we there yet? In XTB analyst Miguel Ángel Rodríguez’ opinion, we aren’t even close to get a simple agreement on which to lay the foundations of the much urgent banking and fiscal union for the euro zone. Yet, the picture is becoming clear about what to do next to succeed.
MADRID | Will European leaders ever jointly move forward? The more the global economy slows down and recession looms too over core euro zone countries, the farther Europe finds itself from agreeing in letting the central bank do its work.
Philipp Rösler, vice chancellor and federal minister of economics and technology of Germany, used Tuesday in London some of the toughest language in defence of further austerity for the euro zone.
“I have to admit that I’m not an expert of internal politics within Spain. However, I’ve been led to believe that it is a very remote possibility to think that Catalonia could actually go independent from Spain,” says the lead portfolio manager of the £470-million Royal London European Growth fund, Neil Wilkinson.
Large institutional investors such as Pimco have publicly acknowledged their interest in Spanish debt, precisely because of the ECB buying program, but it remains to be seen whether the foreign interest is consolidated.
MADRID | The European economy desperately seeks ways to boost its recovery. Could it be so simple as to get a weaker euro, after all? wonders economist JP Marín Arrese.