C’mon let’s be honest, it’s been pretty much a clusterfuck…..
- Recent tensions powerful reminder crisis is still far from over (you can take that to the bank!!)
- Measures in Spain to recapitalise credit system has lost no momentum due to ECB’s LTRO
- Cannot be ruled out further adjustment of employment levels despite labour reform
- Failure to meet deficit targets would lead to further contraction, losses of employment, welfare
- It is urgent measures are adopted to ensure regional govts achieve deficit targets (got that right pumpkin)
- Spanish economy is once again in recession
- Outlook for 2012 not favourable, subject to high degree of uncertainty
- Exports may be the only component of output to increase in 2012
- If reforms, measures restore confidence, reduce financing costs, 2013 may see recovery
- Size, timing of fiscal consolidation required may have negative effects on activity in short term
- Any strategy other than fiscal consolidation would have very negative consequences for market confidence in Spain
- Scale of adjustment required so great Spain must use all instruments available, including taxes
- If budget deviations seen, more measures must be taken in expenditure, new tax measures
- Cannot be ruled out that temporary tax increases may have to be replaced by permanent measures
- Mechanisms obliging govt deficits to be corrected have proved to be insufficient
- Current budgetary imbalance main obstacle of growth for economy
- Crucial to insist regions comply with requirements connected to financing help
Reuters reporting (except the comments in brackets, which are mine)