And this by maintaining a solid financial structureD e such mechanisms are counterproductiveParadoxically companies are struggling to find recruitsCan to make photograph but not to installChoisy urban renewal project is particularly extensiveAt this stage it is the subject of no prosecutionBercy nor the Ministry of SMEs are in sales at the reporting stage mail hotline etcAnd the Department lost Sunday energy and of the sea issuesA decision on appeal is expected tomorrowThe tension was at its peak yesterday Spain. While the Spanish Treasury had to pay almost two times more expensive to put the debt in the short term, the country risk premium reached its historic Summit, 233 basis points. The Madrid stock market ended in bright red yesterday. All reflections of the anxiety of the markets who fear that the Portugal and the Spain fall into a crisis similar to those that pass through the Greece and the Ireland.
The effects of the Irish crisis "were felt" on Spanish debt, stressed quite rightly the Governor of the Bank of Spain, Miguel Angel Fernandez Ordonez, yesterday, before the senators. The Spain thus had to concede yields nearly two times greater for 3,256 billion euros of bonds at 3 and 6 months. Average rates were 1,743 for 3 months bills and 2,111 for 6 months, respectively 0,951 and 1,285 in the last similar programme in October. "It is a faithful reflection of the current situation," commented José Luis Martinez, Strategist with Citibank in Madrid.
In the aftermath, the risk premium of the Spain, or the difference of rates in 10 years with the same maturity German Bund, reached its highest historical, 233 basis points. CDS, debt holders can subscribe to hedge a risk of failure of the Spain, would also swell up to 303 points ( 22 points). The Governor of the Bank of Spain he was "satisfied" that these financial tensions are linked to an "over-reaction" of markets. "The tension is very contagious and auto-alimente in this type of scenarios", abounds with José Luis Martinez. But a hypothetical rescue of the Spain, which accounts for 12 of GDP in the euro zone, would be a just another order of magnitude as that of the Greece (110 billion euros) or Ireland (80-90 billion).
The Madrid Stock Exchange also paid a heavy tribute to the distrust of markets: index Ibex 35 lost a 3.05, in the aftermath of a day of high falls (-2,68). It fell more than 18 since the beginning of the year, one of the worse performance of all awards in the world. Most affected were the major Spanish banks. The first of these, Banco Santander, lost 4.73, while his challenger BBVA plunged 3.9. At the Lisbon also award, large banks have suffered in the same proportions.
"Can we be quiet."
It is not so much the Spanish debt levels - public debt is expected to 63 this year, below the average European - concern the investors that the low growth prospects of the country. "The prospects for progressive resumption are surrounded by uncertainty," acknowledged the Governor of the Bank of Spain. The Spanish economy has simply stagnated in the third quarter and the OECD table on a small 0.2 in 2011. The soaring unemployment rate, verging on the 20 is not more near to improve. "We have before us a path long and difficult to redress the situation of employment and reduce unemployment", recently emphasized the head of the Spanish Government, José Luis Rodriguez Zapatero.
Is the banking sector, divided between national champions and weak links, savings banks, which have been strongly affected by the bursting of the bubble in 2008 and are currently engaged in a process of restructuring. The Spanish financial sector is "much stronger" that one of the Ireland, as demonstrated by the "stress tests", reiterated yesterday the Minister of economy, Elena Salgado. But "can we be quiet with the results of the"stress tests". The Irish Bank was successful on... ", worried yesterday the very well informed daily online"El Confidential. "
