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Euro area government debt rose to 88.2% of GDP in first three months of 2012

At the end of the first quarter of 2012, the government debt to GDP ratio in the euro area stood at 88.2%, compared with 87.3% at the end of the fourth quarter of 2011. Eurostat said that in the EU the ratio increased from 82.5% to 83.4%. Compared with the first quarter of 2011, the government debt to GDP ratio rose in both the euro area (from 86.2%) and the EU (from 80.4%). At…


Is there a way out for Spain?

MADRID | The extensive sell-out on Friday shows the desperate situation Spain is facing. Shattered confidence on the government ability to overcome a looming crash landing, is sending shivers down the spine of investors. People are starting to bet Spain will be forced to bailout one of these days. But, unlike other salvaged countries, its sheer size prevents a rescue package from providing a way out in soothing its woes….


Is Spain doomed to be rescued?

MADRID | Most observers take for granted that the rescue seems the most likely scenario. They simply look at the rising trend risk premium shows. They may be right. But the right question to ask is why confidence on Spain is faltering so much.


Will Anglo-Saxon banks steal spotlight from the euro zone’s?

LONDON | Morgan Stanley recently estimated that liabilities in fines and damages could amount to as much as $22 billion against the dozen banks allegedly involved in Libor-rigging. No one knows. The dimension of the case could scale up once brought to the courts of justice and the spillover on the markets would be extremely difficult to contain. The risk is all too evident. For instance, when Barclays was sentenced…

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Production in construction up by 0.1% in euro area

Being a member of the euro club continues offering confusing evidence of providing protection against the global economic downturn. In the construction sector, seasonally adjusted production rose by 0.1% in the euro area while it grew 1.6% in the European Union in May 2012, compared with the previous month. But in April 2012, production had decreased by 3.7% in the common currency region and 6.9% outside it. Compared with May 2011, production in…

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Spanish exports top euro zone sales to foreign markets

The heaviest economies of the euro zone’s periphery, Italy and Spain, have behaved in a more competitive manner than most sceptics about the laggards of the common currency union would have it. Companies from both Mediterranean countries have increased their presence in markets outside their natural environment, partly forced by a falling domestic demand but due to the strength of production structures and new-found adaptability, too. Here on The Corner,…


Mario Monti cannot hide forever

LONDON/MADRID | Finance-wise, Italy is unnerving some of its neighbours in the periphery of the euro zone. Particularly in Spain, government officials wonder aloud about the unfairness of the whole situation: while yields of the Spanish 10-year sovereign bonds time and again cross the 7 percent frightening barrier, Italy managed last week to sell €5.25 billion in debt of various maturities at much lower interest rates in most of the…

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

By | 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…


Emerging Europe: at two speeds

By CaixaBank research team, in Barcelona | As the year advances, it seems to confirm that the EU economies of emerging Europe are moving at two speeds, as is also the case of the European Union as a whole. Focusing on the five countries we usually review in this report (Poland, Slovakia, Hungary, Romania and the Czech Republic), the first two are keeping up a slightly faster pace in activity…

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Practical guide to know how and when Spain will implement the new adjustments

B. Toribio and R. Ugalde ( | Fasten your seat-belts! This week we will see a new wave of cutbacks that will affect Spaniards'pockets. The president of the Spanish government Mariano Rajoy, and his team, have been warning the country for the last weeks, and here we explain how, when and why those measures will be carried out. Next Friday July 13 is the beginning of many more austerity announcements…