Nov. 26 (Bloomberg) -- Spain is counting on budget cuts and domestic appetite for its bonds to build a firewall against contagion as Prime Minister Jose Luis Rodriguez Zapatero warned investors would lose money betting against the nationâs debt.
Spain, which has the euro regionâs third-highest budget deficit, says it wonât adopt new measures to protect itself from Europeâs worsening debt crisis after cutting the central governmentâs budget gap by almost 50 percent and taming regional spending. Providing support is about half of Spanish debt is held at home, more than in Ireland or Portugal, offering a line of defense against changes in foreign investorsâ moods.
âI should warn those investors who are short-selling Spain that they are going to be wrong and will go against their own interests,â Zapatero said in an interview with Barcelona-based broadcaster RAC1 today. He âabsolutelyâ ruled out Spain would need a rescue.
Spain is trying to distance itself from other so-called peripheral nations after Irelandâs request for a European bailout sparked a bond markets sell-off that pushed Spanish yields to the highest in eight years. The risk for Europe is that Spainâs economy is twice as big as that of Greece, Ireland and Portugal combined, meaning the euro regionâs 750 billion- euro ($994 billion) bailout fund may not be big enough.
http://noir.bloomberg.com/apps/news?pid=20601087&sid=ags_5NYoq.vE&pos=3
It´s too funny how Anglo Saxon media outlets are perversely attacking Spain and other peripheral countries, but it sells good to their Anglo Saxon "ANALyst" readership who are providing these outlets with their latest "European sovereign debt" fairytales. Two predictions : Greece and Ireland will survive the crisis and be in better shape than the UK or the US of A ! Because they did the right thing !
Spain, which has the euro regionâs third-highest budget deficit, says it wonât adopt new measures to protect itself from Europeâs worsening debt crisis after cutting the central governmentâs budget gap by almost 50 percent and taming regional spending. Providing support is about half of Spanish debt is held at home, more than in Ireland or Portugal, offering a line of defense against changes in foreign investorsâ moods.
âI should warn those investors who are short-selling Spain that they are going to be wrong and will go against their own interests,â Zapatero said in an interview with Barcelona-based broadcaster RAC1 today. He âabsolutelyâ ruled out Spain would need a rescue.
Spain is trying to distance itself from other so-called peripheral nations after Irelandâs request for a European bailout sparked a bond markets sell-off that pushed Spanish yields to the highest in eight years. The risk for Europe is that Spainâs economy is twice as big as that of Greece, Ireland and Portugal combined, meaning the euro regionâs 750 billion- euro ($994 billion) bailout fund may not be big enough.
http://noir.bloomberg.com/apps/news?pid=20601087&sid=ags_5NYoq.vE&pos=3
It´s too funny how Anglo Saxon media outlets are perversely attacking Spain and other peripheral countries, but it sells good to their Anglo Saxon "ANALyst" readership who are providing these outlets with their latest "European sovereign debt" fairytales. Two predictions : Greece and Ireland will survive the crisis and be in better shape than the UK or the US of A ! Because they did the right thing !
