AP - Eurozone finance ministers opened the door to using the currency union's bailout fund to buy up distressed Greek bonds, thereby cutting the country's overall debt load as they scrambled to stop the region's debt crisis from spreading to larger economies like Italy and Spain.
Eurozone finance ministers opened the door to using the currency union's bailout fund to buy up distressed Greek bonds, thereby cutting the country's overall debt load as they scrambled to stop the debt crisis from spreading to Italy and Spain.
Spain’s two-year recession ended in the third quarter, underpinning Prime Minister Mariano Rajoy’s bet that exports can reboot the euro region’s fourth-largest economy.
Gross domestic product rose 0.1% from the second quarter, when it declined 0.1%, the Madrid-based National Statistics Institute said today. That matched the Bank of Spain’s estimate on Oct. 23. Inflation in October was 0.1%, the least since 2009, INE said in a separate release.
I must admit to having tuned out the Greek debt crisis a bit. It’s not that the effective bankruptcy of Greece no longer has implications for the world economy – the country could still be forced from Europe’s monetary union, with potentially destabilizing consequences. Nor has the suffering of the Greek people diminished. Unemployment has soared over 25%, and with more budget cutting to come, the economic prospects for the Greeks are unlikely to brighten anytime soon.
France has encouraged Spain to apply for aid as soon as possible. In Germany, Wolfgang Schäuble wants anything but a timely application.
Note that unless a country requests a bailout, and agrees to terms set by the IMF (something Spain does not want to do), the entire OMT plan of Draghi is useless.
Finally, at the latest EU finance meeting on Saturday, battles between eurozone and non-eurozone countries erupted over the banking union.
For a country that laments the imposition of draconian "austerity" measures, now allegedly in their third year, which have so far seen government revenues slide, while spending rises, Spain sure has a problem with figuring out how it is supposed to work.