spanish economy under cloud of elections catalonia separatism
Last Updated : GMT 12:34:34
Arab Today, arab today
Arab Today, arab today

Spanish economy under cloud of elections, Catalonia separatism

Arab Today, arab today

Arab Today, arab today Spanish economy under cloud of elections, Catalonia separatism

Podemos' Pablo Iglesias (C)
Madrid - AFP

The rise of far-left party Podemos in Spain along with Catalonia's separatist drive is unsettling investors who fear the country could change course in a "Greek-style scenario" after upcoming elections.

Spain, the fourth-biggest economy in the euro area, returned to growth in 2014 after five years of decline. Consumer spending is up, exports have jumped and manufacturing output has increased.

The government forecasts an economic expansion of 3.3 percent this year -- more than twice the average growth rate predicted for eurozone countries.

But analysts warn the recovery could be derailed if Podemos does well in December's general election and pro-secession parties win a majority in the Catalan parliament in a September 27 regional vote.

"Investors are really afraid of a Greek-style scenario," said Credit Agricole analyst Leopold Jouven. "That a radical left party comes to power and nips the recovery in the bud by trying to change everything."

Podemos, which is close to Greece's hard-left Syriza party and has around 16 percent support, wants to loosen the grip of austerity introduced by Prime Minister Mariano Rajoy's conservative government, in power since 2011.

After local elections in May, Podemos allied itself with the main opposition Socialists to drive Rajoy's Popular Party from power in several regions and cities, including Madrid and Barcelona.

- 'Growing political risk' -

Private Swiss bank Mirabaud warned in a research note of the "growing political risk from the rise of populist left-wing parties and the possible victory of these parties and the Socialists in the general election".

Spain's borrowing costs have risen in recent months and have exceeded those of Italy's due to the political uncertainty engulfing the country.

Jouven said that was "paradoxical, given that the Spanish economy is in a strong recovery", while the Italian economy is struggling to pull out if its longest postwar recession.

Economy Minister Luis de Guindos said the rise "has more to do with the uncertainty of the general election than with the Catalan issue".

Credit rating agencies and the International Monetary Fund were concerned "that a government that reverses reforms will emerge", he added, in an interview published Sunday in Catalan daily El Periodico.

In another sign of market jitters, investors pulled 21.7 billion euros ($24.2 billion) in assets out of Spain in June, according to Bank of Spain figures.

By comparison investors poured 1.3 billion euros into the country during the same month last year.

"The results of the (May) regional and local elections may have had a negative impact," Spanish bank Santander said in a research note to clients.

- Fragmented parliament -

The rise of Podemos and the centrist Ciudadanos party has eroded the bipartisan system that has dominated Spain since the country returned to democracy following the death of longtime dictator General Francisco Franco in 1975.

Polls suggest the next general election will be a four-way race in which no party wins a majority, paving the way for a fragmented parliament.

"Spain is not used to this type of political situation," said Jouven.

Adding to the political uncertainty is the drive for Catalonia to break away from Spain. The region is home to around 7.5 million people and accounts for a fifth of Spain's economic output, but is heavily indebted.

Hundreds of thousands of flag-waving Catalans thronged the streets of Barcelona on Friday demanding independence ahead of regional elections.

Catalonia's main pro-independence parties have agreed for the first time to run on a single unified list dubbed "Together for the Yes" in the polls.

If pro-independence candidates win a majority of seats in the Catalan parliament, their goal is to push through an 18-month roadmap for secession.

Polls show they are on track to win a slim majority in the 135-seat regional parliament.

The European Commission has warned that Catalonia would no longer be an EU member state if it became independent from Spain. It said the new state would have to apply to join the bloc, raising the question of whether Catalonia would keep the euro currency.

The fears over Catalonia are reflected in research notes from ratings agencies in their assessments of its financial stability.

Moody's and Standard & Poor's classify bonds issued by Catalonia as a risky "speculative investment".

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

spanish economy under cloud of elections catalonia separatism spanish economy under cloud of elections catalonia separatism

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

spanish economy under cloud of elections catalonia separatism spanish economy under cloud of elections catalonia separatism

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Airbnb raided by Japan

GMT 01:55 2017 Saturday ,18 November

Airbnb raided by Japan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday