Speaking in Madrid
On Spain
- Spain is now on the road to recovery
- Balance sheets of Spanish banks have improved
- Doesn’t think ESM exit discussions will be very tough
- Spain could be front runner of euro area recovery
- No reason to extend Spain bank program
- Number one issue is Spanish labour markets
General waffle
- Not easy to regain pre crisis growth rates
- Have to break open labour markets and further reform is crucial
- Main concern is fading urgency in Europe
- Doesn’t see new German government looking to change EU policy
- Hopes Slovenia won’t become a program country
- Greek government has to step up efforts on Troika work and may have financial shortfalls
He’s made a good point about fading urgency as there was a general feeling throughout the crisis that a lot of governments were playing the “It’ll be alright tomorrow” card and that any signs of a recovery will have them taking their foot off the pedal. If there’s one thing that will undo any recovery it will be the premature sense that the job is done.
