For months now the Spanish and international press have been announcing an imminent salvage of the battered European economy by the Chinese. What seems to be true is that it is something that is never confirmed, just rumours, no actual, concrete action on the part of China. This is the idea that is floating around the City in London and among the Anglo-Saxon commentators, especially among those who most favour…
LONDON | Standish, the Boston-based specialist management firm for investments in fixed income markets, issued a press release regarding the ongoing process in Greece after the country’s parliament passed a new fiscal austerity plan. The current Greek government intends to slash its debt-to-GDP levels to 120% in 10 years. Tom Higgins, global macroeconomic strategist at Standish, believes that the prospects of a Greek default are not yet confirmed, even as euro zone leaders…
By Luis Martí, in Madrid | In an understandable effort to correct serious original defects, the European Union has decided to adopt the fiscal compact promised in the European Council declaration of last November 9. This now is presented to us as none other than the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, open for member countries to sign after the January 30 summit. For the German Chancellor this…
By Julia Pastor, in Madrid | Every country in Europe is holding up against the neverending financial crisis as Germany does, but the country ‘cannot rest on its oars’ in order to keep its role as Europe’s biggest economy. This is the major conclusion from the latest Organisation for Economic Co-operation and Development’s economic survey of German, published in Berlin on Tuesday. It is true that Germany’s strength and economic…
By Lidia Conde, in Frankfort | ‘Is the world coming to an end?‘ That was the headline of a feature on the financial crisis published by the Hamburg intellectual weekly Die Zeit. The answer of the many experts and professionals consulted was: yes. Die Zeit quoted Karlheinz Kögel, an entrepreneur from Tyrol specialized in the sale of survival ration packages: powdered milk, cereal bars and tins of meat and chili with an expiry…
LONDON | Will Moody’s tear out the British triple-A badge before those precautionary 18 months go? If the rationale of the warning issued by the financial risk ratings agency to the Coalition government is that the European neighbourhood may in the near future find even harder to charm investors and so will drag the island’s economy with them towards deeper recession, then the top award became meaningless long ago. Markets know this, but still,…
By Juan Pedro Marín Arrese, in Madrid | Europe seems to witness with sheer indifference the Greek slide into utter ruin. Not so long ago Ms Merkel used to stress her unshakeable resolve not to let down any euro country. But the German finance Minister is currently pushing the Hellenic government towards the exit door. What has happened for such a U-turn? To begin with, fears about financial system contagion…
LONDON | The Investment Management Association sent Friday an unequivocal message to the European Commission: do mess with the risk rating agencies at your peril. In its written submission to the Treasury Select Committee Inquiry into credit rating agencies, the trade body for the UK’s £4 trillion asset management industry IMA defended the independent role of credit rating agencies. The IMA said they must be allowed to act free from political interference….
By Julia Pastor, in Madrid | The Spanish financial system reform is already under way, so it generates a non-stop stream of news and comments. The news on Thursday precisely come from the minister of Economy Luis de Guindos’ statements, who said during an interview to radio broadcaster Onda Cero that after the second round of mergers and acquisitions, there will be around twelve entities left in Spain. “They will…
By Juan Pedro Marín Arrese, in Madrid | When it comes to conditions imposed on Greece, they are not so fierce as usually depicted. Axing 25% of minimum wages might seem a harsh therapy. But salaries pegged to this standard would still be 15% higher than in Portugal. As to supplementary pension schemes and holidays bonuses, ask the Portuguese how they feel on that. Closure of more than 100 state-controlled entities…