The euro zone tames government deficit but debt rises
Euro area and European Union government deficit has reached 4.1% and 4.4% of GDP, respectively. Government debt is at 87.3% and 82.5%, according to Eurostat.
eurozone
Public sector and governance: September crucial for the euro area’s future
BARCELONA | The research analysts at la Caixa remind investors of how comfortably (88.2 percent) euro area debt per GDP compares against US’ over 100 percent and Japan’s over 200 percent. But Europe is too unbalanced to survive as it is.
Euro zone: different GDPs, not so much with retail sales
By CaixaBank research team, in Barcelona | Economic slowdown is difficult to stabilise within a context of rising uncertainty that hampers aggregate demand. Economic activity slowed down in the first quarter of the year with negative growth of 0.1% year-on-year, as shown by the detailed figures for gross domestic product in the first quarter. Private consumption continues to adjust, shrinking by 0.6% year-on-year. Gross fixed capital formation has also decreased…
“Grexit would be good for the euro, but not for German exports”
By Tania Suárez, in Madrid | Fernando Luque is analyst and editor for Morningstar. In a conversation with The Corner, he said that Greece will not withdraw the euro because “that possibility is no good for anybody, neither for Greece, nor for Germany.” Luque explains that there are no shortcuts to solve the Greek crisis, but that will not necessarily damage other peripheral countries such as Italy or Spain. Question.-…
How long until core euro countries hurt?
The seemingly dead weight of the peripheral economies continues to mark a divide within the common currency region. The overall picture, unavoidably, registers the cut. GDP fell by 0.2% in both the euro area and the EU during the second quarter of 2012, compared with the previous quarter. Also according to flash estimates published by Eurostat Tuesday, in the first quarter of 2012, growth rates were zero in both zones. Compared with…
Curbing Germany’s economic enthusiasm
That the peripheral economies of the euro zone show time and again evident scars of a struggling performance is bad news, but known bad news after all. The close scrutiny to which Spain and Italy are being subjected leaves little room for surprises. All the alarms get restless, though, when core Europe somehow stumbles. And Germany has for some quarters now been bitten here and there by the decay surrounding it…
Euro zone enters half of top 10 Visa spenders during London Olympics
LONDON | Kevin Burke, director at Visa Inc, believes that the Olympics work as a showcase for athletics, and the same goes for tourism. Burke released Wednesday data on Visa accounts spending levels of international travelers during the second week of the London 2012 Games, which reached $716.7 million. The figures mark a steady line, the total being $1.4 billion. Visitors from the US lead the top 10 list, some…
Spail-out?
By CaixaBank research team, in Madrid | According to the Spanish Royal Academy, «rescatar» or bail out in Spanish is to release from danger, harm, trouble or oppression. Given the misgivings that the outcome of the Greek elections might lead to the country leaving the euro, something that would have hindered the considerable financing needs of Spain and Italy over the coming months, the Eurogroup welcomed the Spanish request and…
Where is the euro’s road map?
By CaixaBank research team, in Barcelona | After the first six months of the year, it’s time to think about the current situation of the economy and its prospects for the second half of the year. There are two main lines along which the euro area’s activity is running. Firstly, the consensus that its institutional design is not enough to tackle the challenges posed by the current crisis. The absence…
S&P affirms Spanish rating is safe for now
NEW YORK | Their outlook remains negative, but there is some brightness in the horizon, the agency reckons. Standard and Poors will not cut Spain’s rating because it believes the country has done its homework, showing a strong commitment to economic and fiscal adjustment. It will continue to receive support from its European partners and the ECB and therefore its debt will remain below 80 percent of GDP beyond 2015….