8) «Spain´s deteriorating public finance?»

by Javier Carro

Topics: Economy, Frontpage

8)      «Spain´s deteriorating public finance?»

We believe Spain´s deteriorating public finances will force it to request a bailout -possibly with other troubled euro- zone economies such Cyprus and Portugal.

Monti and Italy take distance from Rajoy and Spain.

On the other hand, the «official» news close to the Rajoy´s government point out that has not been all bad:

– One key indicator, the yield on Spanish 10-year bonds, has fallen by about 140 basis points in two months. While much the drop can be linked to the promise of ECB intervention, it also suggests that investors no longer regard Madrid´s prospects as bleakly as they did.

– Some foreign investors are starting to dwell on things like Spain´s export success, and also are becoming more careful about going short on Spain. ∎

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