BERLIN | Alberto Lozano | The Portuguese government splits BES into two banks. On the one hand, it will inject €4.9 billion of capital in a new company called “Novo Banco”, which will get all the assets and employees from the crisis-hit bank. On the other hand, all toxic assets mostly related to its exposure to the Espirito Santo family will stay in the current Espirito Santo’s “bad bank”.
BRUSSELS | By Alexandre Mato | The last Eurobarometer after the european elections showed that the EU’s image is improving among its citizens. 35% of them have a positive image of communitarian institutions. Austerity measures to fight the economic crisis or the unresolved unemployment problem have not erased this ‘popular feeling’. But more than 40% think that in a national or European level the economy will remain “the same” for the coming 12 months. Only 24% see an improvement.
MADRID | The Corner | He praised budget contention and austerity, and yet his first announcement as the European Commission new president has to do with investment: Jean Claude Juncker called for a 300 bn euro public-private investment reindustrialisation programme over the next three years.
LONDON| By UBS analysts | Mexico is the eleventh largest country in the world by population. Yet, when it comes to energy infrastructure and consumption per capita, it ranks poorly especially compared to developed, western regions. The energy policy recently introduced provides a major capex opportunity: about €100bn over the coming ten years. Estimates for EU utilities reach investments of €18bn, which would allow for a potential net income increase of €1.1bn. In this context, most of the companies eyeing the region are from Southern Europe, with Enel and Iberdrola remaining as the sector top picks.
MADRID | By The Corner | It was a tax loophole worth billions of euros. And finally the EU-28 finance ministers came to a political agreement on Friday to tighten it up. From now on, European tax rules will be tougher on those multinationals trying to avoid taxation. The compromise was possible after Malta dropped its objections to a deal on hybrid loan arrangements. “That is good news for public budgets, good news for honest businesses and good news for those who seek fair taxation in the EU,” Commissioner Algirdas Šemeta said.
WASHINGTON | By Pablo Pardo | In 2007, 70 percent of Spanish citizens had a favorable opinion on the EU. After seven years of recession, banking collapses and sovereign debt crisis, support is now at just 50%, two points below the United Kingdom’s. This is not the only area where Euro-skepticism has taken hold in the Spanish public opinion. Only 38 percent of Spaniards believe now that “the [European] economic integration has strengthened the economy.” In Britain, the proportion is 41 percent.
MADRID | By Fernando Barciela | As the election day approaches, we bring you a series of special interviews focused on economic perspectives for the EU citizens and companies. Today we focus on the telecom sector, which is experiencing a deep transformation in the continent. Former chairman of Spanish Telefonica Luis Solana, currently responsible for the company’s entrepreneurship activities, comments on the main challenges ahead, as well as the need of surveillancance over the EU banking and energy sectors, and the inevitable downsizing of the welfare state in the region. Nonetheless, he was a socialist elected MP in Spain for five years during the transition period.
MADRID | By Ana Fuentes | The EU highest court backing the right to be forgotten has taken Google by surprise. The Internet giant cannot longer refuse to erase personal information of citizens who request it. The sentence, which is setting a crucial precedent in the history of the Web, has raised an intense debate about censorship and the boundaries of tech giants. From now on, no matter how powerful online providers are, in EU soil they will need to comply with European law unless they have “legitimate” reason to do otherwise.
MADRID | By Julia Pastor | For the first time European citizens will elect the successor of the European Commision’s president Jose Manuel Durão Barroso. The upcoming elections of May 25 will have two candidates, one for the socialist party, Martin Schulz, and another for the conservatives, Jean-Claude Juncker. This change of direction is not the result of a reform or a pact in the back room but of a consensus decision. Hopefully, the US could no longer say they don’t have a European direct interlocutor.
BERLIN | By Alberto Lozano | It’s not all about the deficit. If the eurozone wants to achieve the goal of sustainable growth, Germany also needs to shorten its chronic current account surplus, the world’s largest, which has led the country to accumulate capitals abroad amounting 100% of its GDP. Although this means dismissing one its economic miracle recipes -wage moderation-, Merkel will increase public workers’ salaries by 3% this year, +3X inflation.