The bottom line here is that Spain’s real commitment to meet its targets is still on trial. Pressure from financial markets may well mean that the fiscal effort made in the second half of the year will be much greater than that in the first, but all in all, achieving the 6% target for 2011 looks to be an extraordinarily difficult task, given everything we have seen so far. As one investor put it recently “We are still skeptical as to whether they will really take all the austerity measures or only go as far as the market forces them, and when pressure abates they’ll let the deficit slip again. It seems they want to do as little as needed to relax the markets.”
And, of course, if all this wasn’t enough, even if the fiscal effort is made as the government is promising, this still doesn’t solve the deep-seated underlying problem. Just what is the plan to put sufficient dynamism back into the Spanish economy in order to produce those lovely growth numbers that we would all so much like to see?
No hay comentarios:
Publicar un comentario