The country resists. During the last three years, exports grew at almost the same pace than North America’s, around a 20%.
Spain needs technical but also political assistance to redress the hesitant and often deficient action of the current government. Even if backed by an overall majority in Parliament, the government seems unable to offer a solvent alternative.
Madrid has many reasons to remain cautious on the merits of embarking itself on a no-return ticket to euro-assistance. It doesn’t know for sure the price to pay and the concrete benefits to be reaped.
The day a new EU summit began, financial reports from Madrid poured in with a common alert: the Spanish economy needs fixing and the markets will keep watching how the Rajoy government’s reforms advance.
The bailout that would await the Spanish government’s request is surrounded by many suppositions over its conditionality and how the rescue fund would intervene. But the recent decision of Moody’s keeping Spain’s bonds on investing grades has made investors feel more confident.
Investors’ hoping that Madrid successfully implements the 2013 Budget were left wondering again after the IMF announced its gloomy expectations. For economist JP Marín Arrese, Spain’s euro partners will make a mistake if they keep pushing the country into the same line Greece, Ireland and Portugal have been forced to walk.
Luis Martí, former World Bank director, briefs us about the map of a no-one’s land where the Spanish government seems to be wandering in search of Brussels help to face its financial needs.
It will not look good for the political party in office in Madrid, analyst at Self Bank Victoria Torre told Julia Pastor, but requiring a rescue is only a matter of when. And the Spanish government wouldn’t be the only one to blame.
Managing director at Re-Define, Sony Kapoor is a former investment banker and adviser to governments and international organizations. Kapoor argues that, unless Brussels change course, Spain will end up split between austerity and banking losses.
What exactly is Germany doing? It may succeed in shying away from the rescue bill now but it risks loosing the euro area market. Economist JP Marín Arrese warns the collapse of the common currency is not far from becoming a very real threat.