Brussels

Economy minister de Guindos

Merkel supports Luis de Guindos to be the next President of the Eurogroup

MADRID |The Corner | After a meeting between Mariano Rajoy and Angela Merkel in Santiago de Compostela, the German chancellor gave her support to the candidature of the Spanish Economy Minister, Luis de Guindos, to succeed Jeroen Dijsselbloem as President of the Eurogroup. As Barclays analysts comment, “with Italy’s and France’s leftwing governments and UK in or out of the EU, Spain is now a more attractive partner.” Regarding Germany, Angela Merkel recognised that the crisis in Ukraine is damaging the German economy. Nevertheless, Merkel affirmed that she forecasts a good annual growth if nothing dramatic happens.


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Brussels demands more austerity to Spain to meet deficit target, praises banks’ reform

MADRID | By The Corner | In its first surveillance report after the Spanish banking sector bailout, the EC believes that entities are stronger and cleaner. Even if NPLs ratio has not stabilized, banks “are shifting towards more stable funding, such as deposits, and are relying less on borrowing from the Eurosystem.” As market access conditions have greatly improved, Brussels Spain’s return to positive economic growth (using February data, when growth estimates for 2014 were 1% instead of 1.1%) and was positive about the labour market slight improvement, although it warned that jobless rate remains very high (26% 2Q13). Brussels considers that unless further austerity measures are adopted the crisis-battered country won’t meet its deficit goals.


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EU faces its ‘second Refoundation’

MADRID | By Claudi Pérez at El País via Presseurop | After five long years, the economic crisis has left a deep imprint in the EU, increasing mistrust between member states, but also cementing the belief in a common destiny. It’s time to bring renewed political leadership.


EU Brussels budget

Brussels budget scrutiny in the Eurozone

MADRID | By JP Marin Arrese | The European Commission has undertaken a thorough review of national budgets following the sweeping powers conferred to it to ensure consistency across the Eurozone. When enacted, this move was heralded as breaking into new territory. Yet the opinions now delivered flatly fail to meet its ambitious goal.



Brussels fiscal advices

Brussels fiscal advices miss the target

MADRID | By JP Marín Arrese | So long Germany maintains a staunchly depressed environment, Brussels fiscal advices with no plan to boost employment and growth will soon run out of steam.


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Barcelona challenges Madrid

The Catalonian regional government has filed a request for help warning Madrid it will not accept any condition linked to such rescue. For a Cabinet in desperate need of cash to keep running its services, the flat refusal to take on board any tip seems a bit reckless. But it has a trump card in its bid to soften Madrid resistance. It is threatening to trigger a full fledged confrontation…


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One-off cuts in Spain will fail to impress markets

MADRID | One-off cuts and further squeezing measures have been taken in a desperate attempt to avoid budgetary discomfiture. By mid-term central government deficit had already attained its full year target, not to mention a regional and local performance no one knows for sure where it stands. A drastic brake to such blatant slippery became an unavoidable option. The markets and Brussels have done the rest. Free-running risk premium has not…


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IG Markets’ Daniel Pingarrón: “Euro accords must be implemented quicker”

By valenciaplaza.com | IG Markets' Daniel Pingarrón said in a conversation with VP for The Corner that the European authorities and the Spanish government should improve their timing if they want investors to believe that they can set up a coordinated, effective plan. The Spanish market index Ibex spiked after president Mariano Rajoy announced its austerity policy, but it was a short-lived reaction. Why was that? The recovery of the…


castilla dela manchad spain

Time to slash regions’ spending in Spain

MADRID | The Spanish government has adamantly refused to accept any macro conditioning that might portrait it as falling under a full-fledged intervention. Markets hold a different view witnessing how recommendations advanced by the Brussels bureaucracy are taken to the line. VAT increase stands as the paramount example of an ill-judged proposal Spain is implementing under euro-pressure. Wasn’t the party now in power forcefully opposed to a similar measure not so…