Spain
Spain’s Public Deficit: Firemen Don’t Stand On Each Other’s Hoses
The European Commission did not want to meddle with Spain’s general elections on June 26th and has postponed until July its decision regarding a sanction for the country’s non-compliance with its deficit target. But none of the European community experts have ventured to confirm that this sanction will finally be imposed.
Is There A New Focal Point Of Instability In The Euro, Related To Political Uncertainty?
In Sober Look, Marcello Minenna gives us a clue about a possible new breach in the euro’s structure. A few years ago (2011-2012), when the euro was going through its worst time, one of the consequences was that the central banks in the peripheral countries increased their debt position with TARGET2.
Brussels delays fining Spain in exchange for tough adjustments
Some drivers are so happy when they don’t have to pay their traffic fine immediately, but without realising that a few days they will receive official notification with a surcharge. Something like this has happened with Brussel’s decision to refrain from imposing an immediate fine on Spain for failing to meet its deficit commitment until June 26th. In exchange, the EC has demanded a tough adjustment amounting to 8 Bn€ over this year and next.
Isolux: Another Victim Of Spain’s Highly Prioritised Renewables
Isolux is a Spanish midcap which operates in the construction business and in the maintenance of large infrastructures in over 40 countries. It has been forced to reach an agreement with its principal creditors to avoid bankruptcy.
The Melancholy Of Two Wasted Years
Spain depends on Europe, but in a rather odd way, because Europe is a carcass without a head and without any initiative. Europe has left us in doubt over our deficit because we were in an electoral period. And this brutal wear and tear, which has not been good for us, on the contrary, has not ended. After June 27, whatever happens, the government will be even weaker, whichever it is.
Short And Long Term Political Risks in Europe
AXA IM | A number of political developments are likely to trigger volatility in 2016, especially around the month of June. However, the real risk lies in the longer term. For the first time since the 1950s, EU- scepticism is threatening the European project not just to stall, but to step back. Political risk in the euro area has taken a backseat in recent months.
The consequences of a public deficit which is out of control
Last year’s public deficit exceeded all the predictions of both the government and the experts: it ended up at 5.16%, one full percentage point (almost 10 billion euros) above the target set by Brussels. This huge deviation will have serious consequences and sanctions from Brussels cannot be ruled out.
Spain’s Bancarisation Makes Life Difficult For IFAs
Spain’s bancarisation is making life difficult for its independent financial advisers (Empresas de Asesoramiento Financiero Independiente or EAFIs), while excessive regulation is also clipping their wings.
O2 sale, LatAm weakness are challenges for new Telefonica chairman
If Telefonica approves the choice of current CEO José María Álvarez-Pallete to replace Cesar Alierta as Chairman, he will be the first Executive Chairman not to be appointed by the Spanish government. Alvarez-Pallete will face two main challenges: securing European Commission approval for the sale of O2 and dealing with the weakness of the LatAm economies, particularly Brazil.