“We have a plan to combine fiscal consolidation with structural reforms in order to jumpstart growth in the country and help stabilize the euro area.” This was the core message of the Spanish minister of Economy and Competiveness Luis de Guindos’ speech on Friday at the Brookings Institution, a center-left Washington-based think tank. In his first official trip to the US, De Guindos also held a meeting with the most…
LONDON, MADRID | Ireland and Greece appear this week at the opposite ends of the rainbow. Santander credit research team painted Thursday an optimistic picture in its investors’ note based on the news that LHC.Clearnet has cut down by 10pc the additional margin it requires, which was 25pc, for positions in Irish government bonds cleared through its RepoClear service. A more relaxed market environment has also prompted Ireland to increase asset sales to €3…
By Juan Pedro Marín Arrese, in Madrid | Markets around the world are flooded with huge loads of fresh cash pumped in by central banks. The balance sheets of central banks have tripled since 2008. And yet monetary supply is lagging behind. Don’t put the blame on banks. Their assets are shrinking as a result of the massive reshuffle in credit exposure undertaken by enterprises and individuals. A grim outlook is…
By Juan Pedro Marín Arrese, in Madrid | Economics is not a science but rather a common sense attitude. An open mind approach is vital to grasp its core meaning. Policing it shouldn’t be handed over to people too fond of rigid rules. Let the Germans have a go at it and you’ll end up with a neutral fiscal and monetary stance all year around. No policy at all, in fact….
By Alfredo Aranda, in Madrid | The course of the euro seems to be clearly bearish, according to some analysts. However, in contrast with previous situations, the depreciation of the single currency is more the result of the actions of the ECB than due to traditional factors such as monetary or economic policies. According to Alberto Matellán, the liquidity injection carried out by both the Fed and the ECB are directly…
As published by the German newspaper Die Welt, chief economist of the European Central Bank Jürgen Stark believes that Spain is a good example of how a country can reduce its risk premium by implementing the right adjustment measures. The Spanish daily Expansión refers to his declarations in Monday’s edition. “In an interview given to the German paper, Die Welt, the member of the ECB points out that ‘Spain and other countries…
The Governing Council of the European Central Bank (ECB) decided last week on additional enhanced credit support measures to support bank lending and liquidity in the euro area. In particular, the Governing Council proposed to conduct two longer-term refinancing operations (LTROs) with a maturity of 36 months and the option of early repayment after one year. Among other measures, the central bank also accorded to reduce the reserve ratio, which is…
By Julia Pastor, in Madrid | Ratings agency S&P’s threat of downgrading the euro zone and the EFSF has fallen like a ton of bricks among leaders and European institutions. Santander analysts believe, however, that it has also been accepted with a certain degree of realism: “The German Minister of finance, Schäuble, commented that the warning is the best incentive to promote a solution to the crisis and regain the confidence…