Tag Archives: Spain

Spain – A New Run On The Banks?

English: Euro bank notes Türkçe: Euro banknotlar

Euro bank notes (Photo credit: Wikipedia)

StratRisks, August 28, 2012

(Source: IBTimes)

Spanish consumers are pulling their cash out of banks at record levels, according to figures released on Tuesday.

Private sector deposits fell by nearly 5 percent in July to €1.509, the Telegraph reported, citing European Central Bank data, as public confidence in the banking system reached all-time lows amid a worsening economic situation.

The news comes after bond markets continued to hammer the debt-ridden euro zone nations Spain and Italy last week… (more)  http://ow.ly/1mb8xQ

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‘The euro is irreversible’

English: Various Euro bills.

Various Euro bills. (Photo credit: Wikipedia)

By Alexa van Sickle, Assistant Editor, International Institute for Strategic Studies, August 28, 2012

 ‘The euro is irreversible’ – Klaus Regling, head of the European Union’s bailout fund, says the EU is moving in the right direction after its debt crisis, but that Greece’s future in the eurozone depends on its progress in meeting the terms of its bailout… (more) http://ow.ly/1maM1P

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Filed under European Foreign Policy, European Union, Financial Crisis, International Institute for Strategic Studies (IISS), Think Tank

GPF Europe: Turkish, Iranian presidents discuss Syrian crisis

European Geopolitical Forum: Turkish President Abdullah Gul held a bilateral meeting with his Iranian counterpart Mahmoud Ahmadinejad on the sidelines of an emergency summit meeting of the Organization of the Islamic Cooperation in Mecca, Saudi ArabiaAnadolu Agency reported… (more) http://ow.ly/1lZZvc

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ProSyn: Why Are Governments Paralyzed?

By Michael Spence and David Brady, Project Syndicate, August 15, 2012

It is no secret that the global economy is struggling. Europe is in the midst of a crisis whose root cause is a structurally flawed monetary and economic union. The United States, emerging slowly from a financial crisis and widespread deleveraging, is experiencing a growth slowdown, a persistent employment problem, an adverse shift in income distribution, and structural challenges, with little effective or decisive policy action… (more) http://ow.ly/1lYPMo

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Filed under European Foreign Policy, European Union, Financial Crisis, Project Syndicate (ProSyn), Think Tank

Carnegie Inst: Redefining Europe’s Role in Syria

By Sami Moubayed, Carnegie Institute

If the EU remains noncommittal in its approach to the conflict inWhen protests broke out against the regime of Syrian President Bashar al-Assad in the spring of 2011, local, regional, and international actors developed very different sets of expectations about how the crisis would unfold. The Syrian regime, for its part, believed the protests to be foreign-orchestrated and calculated that a rapprochement with the United States and the European Union would bring them to a halt… (more)  http://ow.ly/1lUz2C

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ProSyn: Europe’s Solidarity Imperative

Peter Sutherland, Project Syndicate, August 9, 2012

When Mario Draghi, the president of the European Central Bank, publicly proclaimed that the ECB would do “whatever it takes” to ensure the future stability of the euro, the effect of his remarks was immediate and remarkable. Borrowing costs fell dramatically for the governments of Italy and Spain; stock markets rallied; and the recent decline in the external value of the euro was suddenly checked… (more)  http://ow.ly/1lTN7r


Filed under European Foreign Policy, European Union, Financial Crisis, Project Syndicate (ProSyn), Think Tank

European Inst: Europe’s North-South Divide—A Stubborn Chasm

By Garret Martin, European Affairs Editor-at-Large, European Institute

Divisions are a reality of Europe’s DNA. For much of its history, the continent’s aspirations for peace and unity have fallen prey to disputes and wars over religion, politics, or ideology to name a few. The European Union’s current woes are the latest example, with the ongoing Eurozone crisis undermining the ideal of integration as ancient centrifugal forces emerge anew. On the surface, the current divide reflects contrasting economic fortunes, with the Southern European states (particularly Italy, Spain, Greece and Portugal) disproportionately impacted by the Eurozone debt crisis, and forced to rely on substantial economic relief from the wealthier Northern European states. According to Indermit Gill, lead author of the World Bank’s seminal study on the European economic model, the EU economy can be viewed as three lanes of traffic, a slow-speed lane in Western Europe, a high-speed lane in formerly Communist Eastern Europe and a third lane, the South – “where cars are going in reverse.” (more) http://ow.ly/1lNKqs

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SWP: After the El Dorado Decade – Spain’s Troubled Path in Managing Its Crisis

by Heribert Dieter, SWP, July 23, 2012

 Since the spring of 2012, the crisis in Europe has been shifting from the former epicenters of Greece, Portugal, and Ireland to Spain and Italy. In particular, the high level of unemployment in Spain has resulted in a choir of demands for increased public spending and a departure from austerity programs. The German government, and especially Chancellor Angela Merkel, is accused of being too stubborn in its demands for more fiscal prudence. American economist Paul Krugman, speculator-turned-philanthropist George Soros, and many others suggest that credit-financed spending would help Spain. In addition, dispatching aid to ailing Spanish banks is considered essential. However, the potential benefits of these policies are not convincing. Credit-financed stimulus programs would weaken the Spanish economy in the long run. On the other hand, large-scale rescue operations for Spanish banks would result in so much collateral damage that continuing on the current austerity path also appears unwise. But before the therapy, the patient’s history ought to be examined: How did Spain – an economic poster child for over a decade – manage to slide into economic calamity? (more) http://ow.ly/1lzJhq

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Filed under European Union, Financial Crisis, German Institute for International and Security Affairs (Stiftung Wissenschaft und Politik SWP), Germany, Think Tank