Spain to Grow Faster Than Germany : PWC

International accounting giant PricewaterhouseCoopers (PWC) is predicting Spain’s growth will outstrip that of both Germany and France from 2015 to 2019.

Annual growth in Spain will be 1.79 percent in this period, against 1.5 percent for the Eurozone, said the accounting giant in the September issue of its Global Economy Watch.
Spain’s growth will also be higher than that of Germany (1.5 percent), France (1.6 percent), and Italy (0.8 percent).
Fellow struggling eurozone economies Greece and Ireland are also predicted to see strong growth from 2015 to 2019 — at 2.5 percent and 2.7 percent respectively.
The PwC forecasts for Spain reflect a generally positive diagnosis of the state of the European and World economies.
“After five years of crisis, recession and disappointing growth we think that developed economies may now be approaching the ‘escape velocity’ needed for a sustainable recovery,” said the authors of Global Economy Watch.
They cited the Eurozone’s 0.3 percent growth in the second quarter of 2012, the slight growth of the US, Japan and the UK in the same period, and a bump in global consumer sentiment.
But the accounting firm said the Eurozone’s problems were not over.
“Economic fundamentals are still weak in (the zone’s) peripheral economies,” said PwC.
The firm also expressed concerns about debt sustainability and high unemployment in some Eurozone countries.
On a global level, the slowing growth rates of countries like India, China and Brazil was also a cause for concern.

George Mills Article from El Local

FFA coments

For Spain to Grow faster than Germany : PWC is would still think have the banks that are in trouble will need sorting out and this could take at least another of couple of years.

There are some deep routed problems relating to certain banks here and I still don’t think that we have seen the last of certain problem issues that need to come out.

Santander hires ex-Bankia chief Rodrigo Rato for international advisory committee

Leading Spanish lender Banco Santander has hired Rodrigo Rato – who was chairman of Bankia shortly before it was nationalized – for its international advisory committee.

Bankia was taken over by the Bank of Spain in May 2012 and subsequently needed an injection of 22.424 billion euros in taxpayer money to restore its balance sheet. Rato – who was economy minister under former PM José María Aznar and subsequently the managing director of the IMF – faces, along with other former members of Bankia’s board, possible charges of fraud, false accounting, criminal mismanagement and misappropriation.

Rato previously worked in a similar role in Santander prior to joining Bankia and received 200,000 euros a year for his services.

Article from El Pais in English

FFA Comments

So the famous Rato Rejoins Santander Bank Spain since leaving his post at the troubled state owned Bankia Bank with a very long list of potential charges against him for fiscal wrongdoings when he was in charge at Bankia.

What does this say about Santander and the Spanish banking system in general? I would say nothing particularly good to be honest. Let’s face it, wouldn’t it be a much better PR exercise for the bank to wait until we know if he is going to be charged with these serious fiscal offenses and wouldn’t he himself feel that it would make sense to keep out of the public eye and concentrate on clearing his name before taking up a post at Spain’s most famous bank?

With corruption in the Spanish news daily and the mess that the banking industry is in general I think that teh people that run this country do need to take to good long hard look at themselves.

Spain’s La Graciosa Island Loses Only Bank

The 600 residents of the minute Canary Island of La Graciosa, or the Funny One, will have to take a boat from now on whenever they wish to make a cash withdrawal.


Cash-strapped Bankia will close 54 of its bank branches across the Canary Islands in October, but none of its clients will be as greatly affected as the Gracioseros.

Once the La Graciosa branch closes its doors after 25 years on the sleepy 29-square-kilometre island, all banking operations will have to be carried out in neighbouring Lanzarote after a half an hour boat ride.

The trip will also include a small drive to the municipality of Haría as the port town of Orzola where the boats arrive doesn’t have a Bankia branch.

La Graciosa, which receives approximately 25,000 visitors a year, has been fighting for greater autonomy over the past few months.

Lobby group “Lagraciosala8islacanaria” gathered thousands of signatures across the Canary Islands in May in the hope of convincing the Canary government to recognize La Graciosa as the eight island in the archipelago.

Recognition of La Graciosa’s island status would mean locals would no longer have to turn to Teguise Town Hall in Lanzarote whenever new rubbish containers were needed or there was an electricity or water cut.

But the closure of the isle’s only bank is only serving to further hamper their aspirations of self-sufficiency.

Bankia had previously only opened their doors on the island twice a week and installed a cash machine which caused havoc when it was out of order for more than ten days.

“They’re disrespecting our struggle and don’t realize what village life is like,” lobby spokesperson Miguel Páez told Spanish daily El Mundo.

“With this move they’re stopping us from progressing.”

Gracioseros are already planning a demo in front of the Bankia branch for the September 12th to force the bank to find a solution.


Article by: Alex Dunham, The Local

El crédito continúa sin fluir a la economía española por motivos empresas sufre en Julio.

El crédito a hogares y empresas sufre en Julio
El crédito a hogares y empresas sufre en Julio

En el mes de julio, la financiación a los hogares descendió el 4,2% en tasa interanual mientras que la financiación a empresas retrocedió el 6,3%, según datos publicados hoy por el Banco de España.

El Banco Central Europeo tendrá una clara referencia de cara a su reunión de este próximo jueves sobre en qué punto se encuentra la financiación a las empresas y los hogares de la periferia europea, verdadera asignatura pendiente de la institución después de haber facilitado inyecciones de liquidez multimillonarias al sistema financiero. La liquidez ha dejado por tanto de ser un problema pero el crédito continúa sin fluir y su descenso, lejos de suavizarse, se agudiza.

Según los datos publicados hoy por el Banco de España, la financiación de la banca a los hogares españoles ha retrocedido en el mes de julio el 4,2%, una cifra que está en línea con el descenso del mes precedente, del 4,3% y que contrasta con la caída del 3,4% del mes de julio de 2012, todas las cuantías en variación interanual. En términos absolutos, el retroceso ha sido de 6.781 millones de euros, hasta un total de 807.446 millones de euros. Es el mayor descenso mensual del año y hay que retroceder a diciembre de 2012 para ver una caída que se le acerque y que entonces fue de 7.833 millones de euros.

En la financiación a empresas, el descenso en el mes de julio ha sido del 6,3% interanual, hasta los 1,082 billones de euros. Una caída de 9.101 millones de euros, también la mayor del año en términos absolutos y que está en buena parte también determinada por los factores estacionales propios del verano y las vacaciones. La variación se modera apenas dos décimas, frente al retroceso del 6,5% del mes anterior y el 7,1% del mes de mayo con caídas, eso sí, inferiores en términos absolutos.

Article posted by Cinco Días