-
Mar 06, 2013
-
The financial goal that is eluding Spain
One knee-jerk reaction to Italy's shock election was to worry about contagion to Spain. As Rome's bond yields shot up last Tuesday, Madrid's were dragged up in sympathy. These are the two troubled big beasts of the euro zone periphery and an explosion in either could destroy the single currency. But Spain probably won't catch Italian flu. True, the risk of Madrid being thrown off its reform path has risen since Italy's elect ion. But PM Mariano Rajoy doesn't have to face the voters for nearly three years. Still, the Italian vote may make euro zone policymakers less keen on austerity and give Spain a better chance of returning to growth. Indeed, investors have already started having second thoughts.
Source -
http://economictimes.indiatimes.com
|