spain outlook darkens region seeks aid
Last Updated : GMT 06:41:18
Arab Today, arab today
Arab Today, arab today

Spain outlook darkens, region seeks aid

Arab Today, arab today

Arab Today, arab today Spain outlook darkens, region seeks aid

Madrid - AFP

Spain's economic outlook darkened Friday as it warned its recession will drag on through 2013 and one of its indebted regions reached out for emergency aid from the cash-strapped government. The regional authority of Valencia said it was applying to borrow from a fund of 18 billion euros set up last week by the central government for struggling regions. In response, the Madrid stock exchange plunged by more than five percent, dragged down by banking shares which found no support in a eurozone rescue deal for the sector finalised by finance ministers Friday. Spanish long-term borrowing costs meanwhile rose to levels considered unsustainable, reflecting growing concerns about Spain's financial stability. "The steady stream of bad economic and financial news coming out of Spain is deconstructing foreign investor sentiment," said Raj Badiani of analyst group IHS Global Insight. The economy is set to shrink by 1.5 percent in 2012 , a slight improvement on a previous forecast of 1.7 percent -- and by a further 0.5 percent in 2013, Budget Minister Cristobal Montoro said in his latest economic forecasts. The government had previously expected 2013 growth of 0.2 percent. A budget ministry official told AFP the unemployment rate this year would hit a huge 24.6 percent, topping an earlier estimate of 24.3 percent in a sign of the ongoing impact of Spain's bitter recession. The economy is forecast to return to growth of 1.2 percent in 2014 and 1.9 percent in 2015, Montoro told a news conference after a cabinet meeting. "For next year the economic scenario is that the recession will continue, but more softly," he said. Unemployment will peak this year before declining to 24.3 percent in 2013, 23.3 percent in 2014 and 21.8 percent in 2015, the ministry said. "There is not positive employment but the destruction of jobs will stop," Montoro said. Stricken by the bursting of a construction bubble in 2008, Spain is struggling in its second recession in four years. Its conservative government has announced pay cuts, tax hikes and other austere economic measures worth tens of billions of euros in its efforts to rein in its public deficit. It is due this month to become the fourth eurozone country, after Greece, Ireland and Portugal, to get bailout funds in the crisis after the eurozone Friday approved aid for Spanish banks of up to 100 billion euros ($122 billion). Despite this, Spanish 10-year bonds markets jumped above well above the 7.0 percent danger level on Friday. The difference between the yields -- the return earned by investors -- on Spanish and safehaven German bonds also moved dangerously high, topping 600 points (six percentage points). "This is surprising, especially considering the recent package of savings measures ... and the definitive validation of the bank bailout," wrote Daniel Pingarron, a strategist at IG Markets trading group. "A large number of investors think that the possibility of a break-up of the euro is rising." With Spain struggling to stabilise its public finances, its eurozone partners agreed this month to relax its deficit-reduction targets, which place a lot of pressure on the regions to curb spending. They eased the targets to reduce the overall public deficit to 6.3 percent of GDP in 2012 from an earlier target of 5.3 percent; to 4.5 percent from 3.0 percent in 2013 and then set a 2.8-percent goal for 2014. Thursday saw the biggest in a recent series of street protests that erupted last week when Prime Minister Mariano Rajoy announced new deficit-cutting measures to save 65 billion euros ($80 billion).  

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*

spain outlook darkens region seeks aid spain outlook darkens region seeks aid

 



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*

spain outlook darkens region seeks aid spain outlook darkens region seeks aid

 



Arab Today, arab today
Arab Today, arab today Skincare PR Performance Full Year 2017

GMT 10:35 2018 Monday ,22 January

Skincare PR Performance Full Year 2017
Arab Today, arab today New hunt for flight MH370 gets under way

GMT 02:36 2018 Wednesday ,24 January

New hunt for flight MH370 gets under way
Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today France sanctions businesses linked

GMT 01:58 2018 Wednesday ,24 January

France sanctions businesses linked
Arab Today, arab today Turkey detains dozens more

GMT 02:09 2018 Wednesday ,24 January

Turkey detains dozens more
Arab Today, arab today
Arab Today, arab today

GMT 07:22 2017 Thursday ,23 November

Zimbabwe's next leader heads home after Mugabe exit

GMT 07:23 2017 Thursday ,23 November

Zimbabwe's next leader heads home after Mugabe exit

GMT 20:34 2018 Saturday ,20 January

Bahrain press headlines

GMT 22:38 2018 Tuesday ,23 January

Bahrain Press headlines

GMT 16:25 2016 Thursday ,22 December

Italian bank Monte Paschi edges closer to state bailout

GMT 06:03 2014 Wednesday ,09 April

Please .. Let Gaza breathe!

GMT 09:12 2017 Friday ,17 November

Gleam Futures represents Grace Beverley

GMT 04:18 2017 Sunday ,26 November

Bella magazine appoints celebrity writer

GMT 06:00 2017 Sunday ,29 October

Childrenswear brand Once appoints Dyelog

GMT 16:33 2014 Thursday ,13 November

Al-Ehtimam Bil Aakhareen

GMT 03:34 2017 Sunday ,05 November

Needle & Thread relocates press office

GMT 14:56 2017 Thursday ,21 December

Ryanair says formally recognises pilots' union

GMT 01:41 2017 Saturday ,12 August

Moroccan video sparks debate on sexual harassment
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