Spain pull the European economy. In the second quarter of the year was the country grew. Meanwhile, the whole eurozone economy stagnated, affected by the deterioration of Germany, France and the suspension of a return to recession in Italy. This is the face of the currency to Spain, because the cross is that the public debt for the first time exceeded one trillion euros, reaching 1,007,319 million in June, an amount roughly equivalent to 98.4% of GDP . The Government plans to end the year at 99.5%. The Prime Minister, Mariano Rajoy, has warned that more reforms are needed to keep pace.
The launch of the European economy will be slower than expected. The euro area recorded zero growth between April and June this year, compared to 0.2% that had been made in the first quarter, according to data released yesterday by the European statistical office Eurostat. This stagnation in all the eurozone countries have influenced the outcome of all the members of the EU, which has advanced a meager 0.2% between January and March when had managed to grow 0.3%.
Eurostat confirmed yesterday that Germany, the engine of the European economy lost 0.2%, while France has stagnated with 0.0% in its quarterly results. To this must be added the double-dip recession in Italy, he returned to the red with -0.2%. This seasoned by geopolitical tensions with border closures ordered by Moscow to European food products, and low inflation, they foresee difficulties have prompted experts from different countries to turn their eyes to the European Central Bank (ECB) to take extraordinary measures.
In this global picture, Spain gets verve and chest out, with growth of 0.6%, although its public debt continues to rise and has already tripled since the crisis began, from assuming the equivalent to 36.3% of GDP in 2007 to almost 100% now. The central government concentrates most, while around a fifth corresponds to the autonomous and 4% to the municipalities.
The Prime Minister, Mariano Rajoy, said yesterday that “Spain was the country with growth in the euro zone, there are important countries fell and others remained, but Spain is the highest growth.” It attributed this success “to the joint efforts of society”, but warned that to keep the tone will have to face new reforms. “You can grow and it can create more jobs,” he said. “We can not stop us, the reforms should continue,” he added to later justify that “Spain has things that do not exist in the vast majority of the world”, such as health, education and public social services, “which require efforts to be maintained “.
Along with Spain, among the countries of the euro area also highlighted the growth of Portugal, with 0.6%, and that of countries such as Poland, Lithuania, Latvia and Estonia. Greece and Ireland have not presented results -rescatados- and Cyprus has been the red lantern, a decrease of 0.3%. Outside the eurozone outperformed the UK, with an increase of 0.8%.
European Commission stressed that the foundations for economic recovery in the eurozone “remain intact” despite “external events can increase uncertainty” as the impact of economic sanctions imposed on Russia in the industry and other productive sectors.
To maintain confidence and growth, member countries have to stay the course of reforms, as have Spain and Portugal with their “bold” measures that have enabled them to grow back, says EU . “The figures present a mixed picture that has to be assessed in the context of medium-term economic conditions,” said spokesman Michael Jennings.
The bags initially suffered nerve caused the results of Eurostat, although they were reassuring throughout the day and ended with mixed closures. The most affected were the peripheral countries, fearing that despite the success of Spain and Portugal, the slowdown in the major European economies to infecting them. In contrast, Germany and France were recovered following statements by the German Government announcing that the decline in the second quarter was limited to those months and that its economy will grow. They also helped the conciliatory statements by Russian President Vladimir Putin in Crimea, and its announcement to amend the list of products that are prohibited entry into your country.
The Spanish stock market fell 0.09% to 10,300 points lost, mainly dragged down banking. The risk premium fell from 154 to 147 basis points, which is explained by investor confidence that following the known results yesterday, the ECB adopt stimulus measures next fall.
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