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Rajoy flees

by Migeru Wed Apr 11th, 2012 at 07:06:27 AM EST

The speed of the decomposition of Rajoy's government is astonishing. It's been only 111 days since his investiture vote on 20 December 2011, and today... (the linked story has video)

Salida por el garaje para evitar a la prensa | Política | EL PAÍSExit through the garage to avoid the press | Politics | El Pais
Regresan a los pasillos de las Cortes las huidas a la carrera de Mariano Rajoy cuando se encuentra con la prensa, habituales en su etapa en la oposición cada vez que había asuntos polémicos. El presidente del Gobierno, que lleva dos semanas sin contestar ninguna pregunta de los periodistas, precisamente en el momento más delicado de su mandato, con la prima de riesgo a 430 y la Bolsa cayendo un 3%, huyó este martes de la prensa de una forma especialmente ostensible.The running escapes of Mariano Rajoy when he meets the press are back in the corridors of the Parliament, as was usual during his time in opposition every time there was a controversy. The Prime Minister, who hasn't answered a press question in two weeks, precisely in the most delicate moment of his tenure, with [Spain's] risk premium at 430 [hundredths of a percent] and the stock market down 3%, fled from the press this Tuesday in a particularly ostensible way.

And #CorreMarianoCorre (run, Mariano, run) is now a trending topic on twitter.


En la sesión de control del Senado, PSOE, PNV y UPN le preguntaban por cuestiones que nada tenían que ver con la prima de riesgo o los recortes en sanidad y educación anunciados el lunes. Y Rajoy aprovechó esa dejación de la oposición para no decir ni una palabra de la situación en los mercados. A la salida, los periodistas trataron de preguntarle en un pasillo si quería lanzar algún mensaje de tranquilidad a los ciudadanos en este momento tan difícil o si iba a comentar algo sobre la situación de los mercados. Rajoy se paró en seco, con gesto muy molesto. Intentó evitar a la prensa y pasar de largo, como ha hecho otras muchas veces. Pero ante la evidencia de que era difícil cruzar el enjambre de cámaras y reporteros, Rajoy miró cada vez más molesto a su equipo, no dijo ni una palabra ante los micrófonos, se quedó parado como si se hubiera bloqueado, y finalmente se dio media vuelta.At the Government Control Session in the Senate, PSOE, PNV and UPN were asking him about issues that had nothing to do with the risk premium or the cuts in health and education announced on Monday. And Rajoy took advantage of this negligence of the oppposition to say not a word about the market situation. At the exit, the journalists tried to ask him in a corridor whether he wanted to issue a message of tranquility to the citizens in this tough moment, or whether he was going to comment something about the market situation. Rajoy stopped cold, with a very annoyed gesture. He tried to avoid the press and pass them by, as he has done many other times. But faced with the evidence that it was diffucult to cross the swarm of cameras and reporters, Rajoy looked increasingly annoyed to his team, didn't say a word to the microphones, sat there as if blocked, and finally turned around.
Su equipo de seguridad le sacó por una puerta lateral para conducirle hasta el garaje, en lugar de salir por la puerta principal, donde le esperaba como es habitual su coche oficial. La imagen de televisión con Rajoy dando media vuelta para huir de la prensa se convirtió inmediatamente en el principal comentario en los pasillos del Senado.His security team got him out through a side door to lead him to the garage, instead of going out through the main gate, where his official car was waiting for him as usual. The TV image of Rajoy turning aroung to flee the press immediately became the main [object of] commentary in the corridors of the Senate.

Earlier in the day, the one to issue a message of calm which, though correct in my opinion, appears nonchalant or insouciant, was the economy minister: [Luis de] Guildos advocated "evading" the markets "in the short term". He actually said that it's good not to pay attention to short term market movements, which on the merits is the right attitude, and to focus on the medium term.

Back to Rajoy, his unpresidential dash today raises the following questions:

  • How long before the EU attempts to force Spain into a "rescue"?
  • Will the EU attempt to replace Rajoy with a Technocratic government?
  • What will Rajoy do or say at the next EU Council Summit?
  • Has Rajoy had his Niemöller moment?

Poll
Rajoy...
. is dead in the water 0%
. is a deer in headlights 66%
. has had his Niemoeller moment 22%
. none of the above (explain in comment) 11%

Votes: 9
Results | Other Polls
Display:
<boggles>

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue Apr 10th, 2012 at 04:42:03 PM EST
Corre, CorreCorreCorr-BZZZZZZZZZZ!!

Be nice to America. Or we'll bring democracy to your country.
by Drew J Jones (pedobear@pennstatefootball.com) on Wed Apr 11th, 2012 at 06:35:23 AM EST
[ Parent ]


There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 06:48:34 AM EST
[ Parent ]


Von überall könnte das Volk, Urbrut alles Undemokratischen, Zelle des Terrors, über die gewählten Hüter von Wachstum und Wohlstand® kommen. - flatter
by generic on Wed Apr 11th, 2012 at 07:02:21 AM EST
[ Parent ]
Rajoy is in the process of (in private) volunteering for a rescue.

That's why he can't speak to the media, he might accidentally spill what he is truly thinking/doing.

It will all be announced before the next EU Council Summit, where he will be showered with praise by the usual suspects.

I leave it to others to outline the reaction of the Spanish people.

by Metatone (metatone [a|t] gmail (dot) com) on Tue Apr 10th, 2012 at 04:46:54 PM EST
In this morning's editorial, Inspiring Confidence, El Pais comes short of asks for a unity government:
Además de corregir estos desajustes, Rajoy debe trabajar para que lo que haya de hacerse sea compartido más allá de su partido. Como se está viendo, contar con la mayoría absoluta no otorga automáticamente la confianza que España debe inspirar, vista la determinación del Ejecutivo en cumplir con sus obligaciones. También los socialistas deben hacer una reflexión en este sentido.

El error de haber retrasado los Presupuestos por conveniencias electorales ya no tiene remedio; echar la culpa a la herencia recibida tampoco va a generar confianza; lo que toca ahora es buscar vías de solución. A ello ayudaría la ruptura del muro entre Gobierno y oposición. Si nos encontramos en un bache de confianza, lo que hace falta son gestos que inspiren confianza. El liderazgo ha de ejercerse incluso para ensanchar la base de los consensos. Y conviene hacerlo así precisamente porque la hora es grave.

In addition to correcting these imbalances, Rajoy should strive for the goal that what is to be done is shared shared beyond his party. As we are seeing, having an absolute majority does not automatically give the confidence that Spain should inspire, given the Executive's determination to fulfill its obligations. The Socialists also need to reflect on this.

The mistake of having delayed the budget for electoral expediency can not be fixed; blaming the inheritance received [from ZP] is not going to build trust, now is the turn of seeking ways of solution. It would help to break the wall between government and opposition. If we are in a slump in confidence, what is needed are gestures to inspire confidence. Leadership must be exercised even to widen the basis of consensus. And it should be done now precisely because the hour is grave.



There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue Apr 10th, 2012 at 04:55:03 PM EST
[ Parent ]
So El Pais wants the PP and PS go down the drain like ND and Pasok in Greece? (Not to speak of Spain itself)?

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Tue Apr 10th, 2012 at 05:07:59 PM EST
[ Parent ]
Beats me...

Apparently "PPSOE" is right.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Tue Apr 10th, 2012 at 05:16:11 PM EST
[ Parent ]
How ready is IU to pick up the hordes of terrified voters that will seek refuge towards the left?
How probable is it that a right-wing populist party to the right or thereabouts of the PP, but against austerity, will split off or emerge?

I ask this because the left in Greece pro-memorandum was at ~12%, and now it is at ~40%. While the populist anti-troika right and far right (without the nazis which are now at 5% from ~0,5%) are now at ~15%...

The road of excess leads to the palace of wisdom - William Blake

by talos (mihalis at gmail dot com) on Wed Apr 11th, 2012 at 12:26:12 PM EST
[ Parent ]
I don't know about picking up voters. To what extent the voters they did pick up last November are already a result of the crisis?

However, since then there have been two regional elections in Asturias and Andalusia which we didn't cover on the blog. The result has been that the PP tide has been stopped. There will be a PSOE/IU government in Andalusia and the left and right are tied in Asturias with UPyD as the tiebreaker. It will be at least three years until the next national and regional elections, but there will be european elections in two years. The Galician, Basque or Catalan elections are on their own calendar as well. Maybe it's time to address your question from a broader perspective and do some statistics, too.

I suggest revisiting this thread and the election diary that contains it.

		 2000  2011
eligible voters 34.0M 34.3M
votes cast	23.3M 24.6M
valid votes	23.2M 24.3M
votes to lists	22.8M 23.9M
PP		10.3M 10.8M
PSOE		 7.9M  7.0M
IU		 1.3M  1.8M
UPyD		    -  1.1M
CiU		0.97M  1.0M


There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 12:38:08 PM EST
[ Parent ]
since then there have been two regional elections in Asturias and Andalusia which we didn't cover on the blog.

Only briefly here. Whom did the IU gain from? Also, was there (and is there nationally) anything right of the PP?

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Wed Apr 11th, 2012 at 05:51:47 PM EST
[ Parent ]
There is nothing worth mentioning right of the PP. There have been extreme right splinter parties off the PP in the past, as well as traditional extreme right parties, but they are all way to small to matter. The PP has its own ugly faction(s).

IU gained very few votes directly from PSOE. Most of what PSOE lost was to abstention. In fact, even the PP lost votes in absolute terms (I just found out).

Here are the statistics: first, participation: down from 72% to 62%:

And then, seats and votes:

PSOE lost a full 30% of its vote, PP lost 10%, and IU gained 1/3. But IU only gained about 120 thousand votes to 650 thousand lost by PSOE. A quarter million went to abstention.

(source)

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 06:12:24 PM EST
[ Parent ]
The General election was only 5 months earlier. Then, participation was high.

The reason participation was so much higher in the 2008 regional election than in 2012 is probably that the 2008 election was simultaneous with the General. The 2012 election was a genuine second-order election.

As to the vote counts and percentages:

(source)

The PP got pretty much the same number of regional and national votes in 2008, but on the left there was definitely a "useful vote" going from IU to PSOE in the General (IU got a third less votes, with the difference going almost entirely to the PSOE).

In the 2011 General, the PP got 400 thousand more votes than in the 2012 regional. PSOE polled comparably, and IU did better in the regional than the general. Is it possible that there were voters going to PP in the General and then to IU in the regional, or is there a three-way traffic involving the large abstention pool?

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 06:23:45 PM EST
[ Parent ]
Migeru:
A quarter million went to abstention.

I don't know of research on the topic, but I have an impression that it is not uncommon to go old party - abstention - new party. Politics being tribal leaving your tribe directly for another might feel wrong.

Migeru:

IU gained very few votes directly from PSOE.

So I guess they gained from abstention? Would be interesting to know what those voters voted in the election before last.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Thu Apr 12th, 2012 at 01:00:57 PM EST
[ Parent ]
How secret and voluntary can that be, when the Spanish [Socialist!] EU Commissioner has already been rumoured to be the one to suggest that Spain ask for an EU bailout of its banks?
El Pais has a report from Brussels quoting a senior official as saying that the Spanish adjustment would proceed faster if Spain were to apply for an ESM programme to recapitalise the banking sector.

El Mundo also quote what it called a high-level source who listed an ESM programme as one among three options for Spain to clean up its banking system.

The papers did not name the official. But Reuters did. It said in an article:

"El Mundo did not name the official. However, Competition Commissioner Joaquin Almunia laid out these options to Spanish journalists, people who attended the briefing told Reuters... They quoted Almunia, a former socialist Spanish minister, as saying that the government of Prime Minister Mariano Rajoy would have to decide in the next weeks on how it would push through the restructuring of the financial sector."
The reports triggered all sorts of official denials, including by the Spanish government and by Olli Rehn.



There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue Apr 10th, 2012 at 06:17:58 PM EST
[ Parent ]
Can the EU afford to bailout Spain ? I suspect that even the ECB now know that austerity doesn't work, they just can't get the hedge funds to stop wanting their pound of flesh {hint : try legislation}

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Wed Apr 11th, 2012 at 03:25:48 AM EST
[ Parent ]
Hint: try bond purchases.

However, the Central Bankers (Spain's included) are busy saying that there's no need for a Spanish rescue, as well as demanding further "reforms" and "budget consolidation". I don't know what they know but I know what they say, and what they say is that they're not about to admit their policy direction has been wrong for 3 years.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 03:32:48 AM EST
[ Parent ]
Eurointelligence Daily Briefing: So much for "the worst is over" 11.04.2012
The news coverage, as ever, struggled to explain the turnaround in market sentiment - oscillating between "markets worried about Spain missing its deficit targets" and "markets worried about Spain trying to hit its deficit targets".
The news coverage was, as ever, conventional and therefore clueless and incoherent
Our sense is that investors have belatedly realised that the austerity drive is counter-productive, and that Spain is virtually certain now to require an ESM programme.

El Pais lists the reasons for the shift in market sentiment is the visible deterioration in the Spanish deficit;

the ECB's LTRO running out of steam;

an insufficient attempt to force the Spanish banks to take losses;

and doubts over the latest austerity budget. The article noted that the announcement of further €10bn in cuts failed to calm the markets. The bond spreads are now only a whisker from its absolute peak in November when they reached 4.7%. The articles quotes a financial analyst as saying that once Spain applies for the ESM, the mechanism will then be regarded as quite small. Spanish officials were wheeled out yesterday to downplay the crisis, with economy minister Luis de Guindos saying that Spain had already raised half of its 2012 refinancing requirements,

As I have argued on occasion, what the secondary market does when there isn't a forthcoming bond auction is irrelevant, except for the valuation of bonds as (bank) collateral, which may lead to margin calls on bondholders.
and central bank chief Miguel [Ángel Fernández] Ord[óñ]ez insist that Spain was "not even close" to an ESM programme.

Earlier in the day Reuters reported - without even a hint of irony - that the European Commission welcomed new Spanish austerity plans, and that it had a positive view on the 2012 budget draft.

The European Commission: also clueless.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 03:42:23 AM EST
Yes and no. Ordinarily, the secondary market rate on sovereign bonds sets the lower bound on what banks will charge to firms. With the ECBuBa more inclined to do rediscounts on private than on public bonds, the usual rules may not apply, though.

- Jake

Austerity can only be implemented in the shadow of a concentration camp.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Apr 11th, 2012 at 05:55:15 AM EST
[ Parent ]
Ordinarily, government bonds are as good as a cash deposit. People have woken up to the fact that, in the Eurozone, they are not.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 06:37:25 AM EST
[ Parent ]
EU Observer: Euro area states put Greek loans at €30 billion (11 April 2010)
The decision taken by euro area finance ministers during a teleconference on Sunday afternoon (11 April) caps off a turbulent week for Greece, during which the country's borrowing costs rose to record highs. On Friday Greece also suffered a fresh credit rating downgrade by the Fitch agency.

A decision on future loans has yet to be taken. "The amount for the subsequent years will be decided at a later date depending on how the financial situation in Greece develops," Luxembourgish Prime Minister Jean-Claude Juncker told journalists in Brussels after the teleconference. Mr Juncker chairs the monthly meetings of the eurozone's 16 finance ministers, known as the eurogroup.

Tough austerity measures announced earlier this year by Greece's centre-left government have so far failed to bring down the country's borrowing costs, while a bail-out deal agreed by euro area leaders last month also failed to impress investors looking for greater detail.



There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 04:10:42 AM EST
EurActiv: Euro zone readies 30bn euros to rescue Greece (11 April 2010)
Eurozone finance ministers approved a giant 30-billion-euro emergency aid mechanism for debt-plagued Greece on Sunday (11 April) but stressed Athens had not requested the plan be activated yet.

...

"With today's decision, Europe sends a very clear message that no one, any longer, can play with our common currency, no one can play with our common fate," Greece's Prime Minister George Papandreou said in a statement yesterday.

...

"The programme will cover a three-year period. The euro area member states are ready to contribute for their part up to 30 billion euro in the first year to cover financing needs in a joint programme to be designed with and cofinanced by the IMF," the EU finance ministers and the European Commission said in a joint statement.



There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 04:13:39 AM EST
[ Parent ]
European Commission: The financial and economic crisis - a chronological overview - April 2010
11 April 2010
Eurogroup statement on the support to Greece

Following the statement of the Spring European Council of 25 March, this agreement of the Eurogroup under their presidency of Jean-Claude Juncker makes the financial support mechanism for Greece fully operational. In the first year of this three-year programme, euro area countries are ready to provide on non-concessional rates bilateral loans of up to € 30 billion. The European Commission will pool the loans as part of a package including additional financing by the International Monetary Fund (IMF) and will set up a joint programme together with the European Central Bank, the IMF and the Greek authorities.

>> Commission President Barroso. Statement of the European Commission on Greece
>> Eurpean Council. Statement on the support to Greece by euro area Member States
>> The Eurogroup
>> President of the European Council
>> Statement by President Van Rompuy on the Eurogroup Agreement on Greece
>> Statement by IMF Managing Director Dominique Strauss-Kahn on Greece

From the linked PDF:
The programme will cover a three-year period. The euro area Member States are ready to contribute for their part up to € 30 billion in the first year to cover financing needs in a joint programme to be designed with and cofinanced by the IMF. Financial support for the following years will be decided upon the agreement of the joint programme In order to set incentives for Greece to return to market financing, Euro area Members States loans will be granted on non-concessional interest rates. The pricing formula used by the IMF is an appropriate benchmark for setting Euro area Members States bilateral loan conditions, albeit with some adjustments. Variable-rate loans will be based on 3-month Euribor. Fixed-rate loans will be based upon the rates corresponding to Euribor swap rates for the relevant maturities. A charge of 300 basis points will be applied. A further 100 basis points are charged for amounts outstanding for more than 3 years. In conformity with IMF charges, a one-off service fee of maximum 50 basis points will be charged to cover operational costs.

...

The Eurogroup is confident that the determined efforts of the Greek authorities and of its European Partners will allow to overcome the fiscal and structural challenges of the Greek economy. In this context, the Eurogroup welcomes the budget execution in the first months of the year, which shows that the measures taken so far are bearing fruit.



There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 04:18:38 AM EST
[ Parent ]
"non-concessional rates"

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin
by Crazy Horse on Wed Apr 11th, 2012 at 07:13:31 AM EST
[ Parent ]
Killing Greece softly with their song.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 09:09:16 AM EST
[ Parent ]
Softly?
by cagatacos on Wed Apr 11th, 2012 at 10:04:24 AM EST
[ Parent ]
Which of the people in the photo are elected officials? I ask because in the U.S., one requirement is that you be at least 6' (2m) tall to get elected to high office, so based on that, I would guess the guy in front is the one...
by asdf on Wed Apr 11th, 2012 at 10:46:52 AM EST
Rajoy is actually taller than Zapatero...



There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Wed Apr 11th, 2012 at 10:49:19 AM EST
[ Parent ]
Is this a new requirement? I seem to remember somebody called Jimmy Carter.....
by gk (g k quattro due due sette "at" gmail.com) on Wed Apr 11th, 2012 at 01:46:27 PM EST
[ Parent ]
Yeah, that contributed to his official nickname "worst president ever." Ask any GOP enthusiast...

Also that's why Hillary lost.

by asdf on Wed Apr 11th, 2012 at 02:01:13 PM EST
[ Parent ]
According to Wikipedia, George W. Bush was 5 ft 11 1⁄2 in.....
by gk (g k quattro due due sette "at" gmail.com) on Wed Apr 11th, 2012 at 02:04:47 PM EST
[ Parent ]
by asdf on Wed Apr 11th, 2012 at 02:30:45 PM EST
[ Parent ]
But it implies that the current minimum would be 72"+ (because of the deviation allowed for Shrub).

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Apr 11th, 2012 at 05:44:21 PM EST
[ Parent ]
So that is why Lincoln is so popular, tallest president ever!

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!
by A swedish kind of death on Thu Apr 12th, 2012 at 01:07:33 PM EST
[ Parent ]
Eurointelligence Daily Briefing: Rajoy tells Monti to stop blaming Spain
Tensions are mounting in the eurozone, as a frustrated Mariano Rajoy hits back at Mario Monti's increasingly frequent protestations that Spain is the real troublespot in the eurozone; he said he expect more support from the EU; Benoit Coeure says ECB is ready to intervene, a statement that temporarily helped to calm markets yesterday, as the euro rose, and Spanish yields softened; the European Commission said yesterday that Spain will not need an ESM programme; Wolfgang Munchau says crisis returned because investors have lost confidence in crisis resolution policies in Spain, and because the fallacies of the LTRO are becoming apparent; Martin Wolf says the Bundesbank is wrong in claiming that the adjustment in the eurozone must come from deficit countries alone; he warns against a beggar-thy-neighbour policy the contours of which are already emerging; Spain seeks to calm investor nerves with quarterly reports on the fiscal position of the autonomous regions; Fitch says the troubles of the Spanish banking sector are likely to persist; Pierre Briancon writes that the eurozone obsession with austerity is the main driver of the crisis right now; a former German justice ministers says she will launch a constitutional complaint against the ESM and the fiscal pact; Assmussen backs IMF call to look at debt relief for homeowners; New Democracy is losing political support to far-right parties; Le Monde, meanwhile, has interesting comparison between the campaigns of Giscard d'Estaing in 1981 and Nicolas Sarkozy today.


There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Thu Apr 12th, 2012 at 04:19:23 AM EST
ElPais.com in English: Rajoy wags his finger at Italian PM as he rules out need for a bailout
As the Spanish financial markets sought relief in supportive statements from the European Central Bank (ECB), Prime Minister Mariano Rajoy took umbrage at unwanted remarks by his EU partners on Spain's woes, suggesting they confine themselves to putting their own houses in order.

...

This is the second time Monti has directed his barbs at Spain. Last month, the Italian leader said Spain was "giving Europe every right to be worried." Rome attempted to diffuse the situation by subsequently issuing a statement saying Italy "had plenty of confidence." The rift was apparently healed at a face-to-face meeting of the two leaders on the sidelines of a summit in Seoul.

French President Nicolas Sarkozy has also made critical remarks about Spain while campaigning for the presidential elections in his country. At the start of this month, ECB President Mario Draghi said the borrowing costs of countries such as Spain had risen sharply of late because of the markets.

Is Rajoy maybe waking up to the fact that his partners in the European People's Party government of Europe are not his friends? Zapatero was unable or unwilling to do so.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Thu Apr 12th, 2012 at 04:25:28 AM EST
[ Parent ]
One reason for this attitude may be his solid majorityin parliament.

ElPais.com in English: Rajoy refuses to ask Socialists for show of solidarity amid market attacks

Unlike his predecessor, José Luis Rodríguez Zapatero, who called Rajoy last August when Spain's risk premium rose above the 400-point mark, the Popular Party (PP) leader believes that the Socialists are not willing to help his government. "We're not expecting their help because we are not going to get it. But that doesn't bother us," Rajoy said on Wednesday in Andalusia.

...

"If Rajoy telephones Alfredo Pérez Rubalcaba to speak about this emergency situation, of course we are going to speak and listen," said a Socialist spokesperson on Thursday. "But that initiative has to come from the government, just like Zapatero did when we were under a similar situation. And besides just talking about the economy, we will also have to address the labor reform package."

The Socialists believe that the lack of confidence is also partly being generated by the Rajoy administration for continuing to blame the previous Zapatero government for the "situation it has inherited."

Meanwhile, El Pais keeps trolling for a unity government (literally, for a "State pact", i.e., a broad political agreement) in its editorials, for at least the third day running. This may be the serious people on the centre-"left" trying to get the PSOE to share some of the credit (ahem) for getting spain out of the crisis (which the current policies will not).

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Thu Apr 12th, 2012 at 04:33:08 AM EST
[ Parent ]
ElPais.com in English: ECB helps orchestrate reprieve for spanish financial markets
The ECB's Benoit Coeure said at an event in Paris on Wednesday that the attack against Spanish financial assets was not justified by Spain's fundamentals and dropped a strong hint that the bank was prepared to intervene by renewing purchases of Spanish debt in the secondary market.

...

"We have a new government in Spain that has taken very strong deficit measures," said Coeure, who is in charge of the ECB's market operations. "All this takes time. The political will is enormous."

...

"We are seeing growing signs of normalization in entire segments of the [debt] market," he said. "But the situation in the past few days shows the normalization is still fragile."



There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Thu Apr 12th, 2012 at 04:27:47 AM EST
[ Parent ]
I don't think politicians are able to have a "Niemöller" moments. That needs some integrity and understanding.
by kjr63 on Sat Apr 14th, 2012 at 12:30:38 PM EST


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