Spain

Spain must seize the moment for more austerity

18 Aug 2011

The markets’ focus has been on Italy and France. Emergency ECB buying of Spanish bonds has helped bring down yields. Spain may not have crippling debt, but it’s plagued by low growth and a high deficit. Fresh austerity measures due this week need to be comprehensive and credible.

Split EU regulators weakened by dubious short ban

12 Aug 2011

Without the cover of European unanimity, countries that imposed short-selling curbs have made it look like they have something real to worry about. Bank shares are still gyrating - hardly evidence of a more stable market. Watchdogs risk suffering a hit to credibility.

ECB’s bazooka has a limited shelf life

8 Aug 2011

The central bank’s decision to buy Italian and Spanish bonds has calmed investors’ nerves. But the ECB is only buying time until the euro zone governments’ bailout facility is ready to step in. And the repercussions of Friday’s U.S. ratings downgrade could limit future rescues.

Italy overtakes Spain as euro zone’s main worry

2 Aug 2011

Yields on Italian bonds are soaring as the political vacuum fuels fears the government won’t be able to implement its fiscal plans. Spain is suffering too. But Madrid is tackling its problems, while Rome is stalling. Given the sheer size of Italy’s debt, that’s a major concern.

Rajoy needs to tell Spain some home truths

1 Aug 2011

The country’s probable next PM shouldn’t wait until after November’s election to level with the Spanish people about the actions needed to avoid getting sucked into the euro zone crisis and to restore competitiveness. Here’s the speech he should give now.