""it is far from clear that Germany is willing to give up their own banks
to supervision by the ECB."
It is also unclear what will happen to insurance,
which can not be monitored by the ECB according to the EU Treaty.
Or if the conditions to be imposed in order to use the European Stability Mechanism (MEDE),
conditions that likely will go beyond the financial sector...
Showing posts with label Spain. Show all posts
Showing posts with label Spain. Show all posts
4/28/10
Market Watch: S&P cuts Spain to 'AA' on weak economic growth
Standard & Poor's Ratings Services on Wednesday lowered Spain's long-term sovereign credit rating to AA from AA+.
"We now believe that the Spanish economy's shift away from credit-fuelled economic growth is likely to result in a more protracted period of sluggish activity than we previously assumed," said Marko Mrsnik, an S&P credit analyst.
"We now project that real GDP growth will average 0.7% annually in 2010-2016, versus our previous expectations of above 1% annually over this period," he added.
Private sector debt, which is at 178% of GDP, and an inflexible labor market as well as low export capacity are all burdening Spain's economic growth, according to the ratings agency.
The outlook is negative.
MarketWatch
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