Displaying items by tag: Spain
Spain Ousts PM in Spread of Panic
(Madrid)
In what seems to be a spread of European unrest, Spain’s Parliament voted today to remove the country’s PM, Mariano Rajoy, who has been in power for seven years. While the reasons for his ouster are very different than in Italy, the move will add pressure to a European continent that is plagued by political unrest. Rajoy’s party was plagued by a corruption scandal, which seems to have ultimately undone the PM. He will be replaced by a PM from the Socialist party.
FINSUM: The worry we have here is that the socialist party may undo a lot of the budgetary gains that have been made during austerity—not totally dissimilar to Italy in effect. Then again, at least they are not Euro sceptics.
Watch Spain to See if Eurozone Crisis Unfolds
(Madrid)
While all eyes are on Italy and its political/markets crisis, the answer to the really scary question—will the Eurozone and EU fall apart—might lay in Spain. Italy is going to go down the road it chooses, but the big consternation is really about whether others will follow. To see the extent of the crisis, one needs to follow Spain, which will be holding a no confidence vote for its PM on Friday, with socialists likely to take over in his party’s absence.
FINSUM: If Italy falls, the next domino seems likely to be Spain. If the pair indicate they are leaving the Euro we will probably have a financial crisis unfold.
The Meltdown is Engulfing Spain
(Madrid)
This is Europe week for financial markets. Italy is currently engulfed in a political, and increasingly markets, crisis. Now the panic and political gloom is spreading to Spain. The country’s Prime Minister, Mariano Rajoy, is set to face a no confidence vote and the outcome is very uncertain. Accordingly, Spain’s sovereign yields have been rising alongside Italy’s. The no confidence vote will be held on Friday and comes following a ruling of corruption against the center-right party of which Rajoy is leader.
FINSUM: Southern Europe is back in the news this week after a six-year hiatus. We don’t think anything major will be caused by Spain, but the Italian situation is very dicey.