Mariano Rajoy’s Partido Popular (PP) may have won the most seats of any party in Sunday’s regional election in Andalusia, but he will view the result as a resounding failure. Rajoy’s conservatives finished the vote count with 50 seats, compared with the Socialists’ 47. In the Socialists’ biggest regional stronghold, that might look like a triumph, but with the United Left (IU) taking 12 seats, the left did enough to govern in coalition. This election came three months into the tenure of Rajoy as prime minister and was seen as a gauge of his national government, as much as the performance of his Andalusian candidate, Javier Arenas. Andalusia has enormous symbolic significance. Ever … [Read more...] about Andalusia election gives Rajoy a reality check
spain debt crisis
Is Greece poised to give the euro a boost?
For almost eight months, bureaucrats in Athens have been negotiating to convince investors to take a voluntary loss on their bonds, arguing this is the only way Greece can get its debt onto a sustainable footing. Until just the last day or so bondholders have refused, for the good reason that volunteering to take a loss is like opening your wallet to strangers in the street! Somehow or other though EU officials have managed the impossible, and investors stand poised to accept a 50.0% loss on their existing Greek bonds, while accepting an interest rate of just 3.75% on replacements. How then might this help the euro? Because if Greek officials and bondholders had not reached agreement, … [Read more...] about Is Greece poised to give the euro a boost?