Onwards and Downwards

Economy Minister Luis de Guindos, defending the Government's economic strategy (photo: by mercedesalonso)

Another shaky day for the Spanish economy, as Spain’s risk premium continues to rise – reaching the highest point since December, and since the Partido Popular took power at the end of last year.

Economy Minister Luis de Guindos claimed today that the rising risk premium is down to the markets’ worries about the ability of Spain to recover from the economic crisis. He went out of his way, though, to highlight that this was not a problem confined to Spain.

“What this shows,” he said, ” is that there has been an increase in market nervousness, but it has not been only about Spain. It has affected all the countries of the eurozone. It has been evident in the rest of the eurozone countries which are vulnerable in one way or another.

“It is a problem which is all about the negative perception of economic growth in Spain, Portugal and Italy,” de Guindos added. He went on to defend the measures the Government is taking, especially with regard to the proposed national budget for 2012.

The only slight silver lining today was that the Spanish stock exchange held steady, despite the storm clouds gathering overhead. The Ibex 35 closed down just 0.2%.

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