Measures announced yesterday by the ‘Troika’ to unblock a package of measures worth €44bn for Greece, are steps in the right direction, but will not be not sufficient to reduce the public debt of the country substantially, and to restore debt solvency by 2020, according to Fabio Fois, European economist at Barclays.
The decision as to whether Spain will ask for a bail-out will be left to the Spanish government, a senior official at the International Monetary Fund has confirmed.
Important progress has been made in reforming Spain’s financial markets for the European financial assistance for bank recapitalization agreed between Spanish and European authorities, an independent mission to Spain of the International Monetary Fund (IMF) has found.
Spanish authorities have taken strong measures to face the current economic crisis on several fronts, but mounting market pressure on Spain and soaring borrowing costs would have negative consequences for the rest of Europe, the International Monetary Fund (IMF) has warned.
Spanish banks might need up to €62bn to complete the recapitalization process, according to stress tests conducted by independent auditors Roland Berger and Oliver Wyman.
Spain’s government, headed by prime minister Mariano Rajoy (pictured), has confirmed it will make a formal request for aid from the European Union, and is expected to receive up to €100bn of financial support.
Fifteen years ago, in May 1997, Tony Blair’s new government granted the Bank of England its independence. Since then its fortunes have been mixed.
The outlook for the Spanish banking industry is turning ever more negative, following the decision by the Spanish government to proceed with a state bail-out of Bankia, one of the country’s biggest banks by assets.
European markets were flat this morning after Greece last night won a second bail-out, worth €130bn that saves it from bankruptcy, after exhausting talks lasting over 13 hours.
Greece’s rulers have backed further austerity measures necessary for their struggling country receiving €130bn in central aid, but primary financier Germany warned Athens must still “do its homework” after repaying the next tranche of loans to fall due, on 20 March.
Markets and politicians will never agree on some things – quelle surprise, and c’est la vie.
This week’s series of high-level meetings in Europe is being billed as make or break for the euro, and will likely lead to an unsatisfactory tightening of fiscal discipline rules, says Darren Williams, senior European economist at Alliance Bernstein.