by Bill McBride on 10/07/2012 06:32:00 PM
Sunday, October 07, 2012
George Osborne is set to be told this autumn by the Office for Budget Responsibility he will have to plug another large hole in the public finances, extending austerity until 2018 and throwing the coalition’s deficit reduction strategy into doubt.From Bloomberg: Europe Seeks to Contain Spanish Troubles as Finance Chiefs Meet
Excerpt with permission.
European officials will move to prevent Spain from dragging the single currency into a new round of convulsions this week as a series of high-level meetings aim to ease the three-year-old European debt crisis.With a 25.1% unemployment rate in Spain, maybe they should call it an "unemployment crisis".
European finance ministers meet in Luxembourg today to discuss Spain’s overhaul effort and closer banking cooperation, while on Oct. 10, Spanish Prime Minister Mariano Rajoy travels for talks with French President Francois Hollande in Paris. Germany’s Chancellor Angela Merkel tomorrow makes her first visit to Greece since the crisis began in 2009.
“It feels as if we are in for a month or so of Spanish trouble,” Erik Nielsen, London-based chief global economist at UniCredit SpA (UCG), wrote in a note yesterday.
And from Bloomberg: Greece’s Coalition Government, Troika Pause on Budget Talks
Greece and its European Union and International Monetary Fund creditors made progress on talks on a 13.5 billion-euro ($18 billion) package of austerity measures for the next two years and said negotiations would continue next week.I doubt Merkel would be visiting Greece on Tuesday if the report was going to be "bad".
Finance Minister Yannis Stournaras told reporters in Athens after briefing Prime Minister Antonis Samaras on the latest round of negotiations that he hoped the inspectors would give euro-area finance ministers meeting on Oct. 8 a good report.
Posted by Bill McBride on 10/07/2012 06:32:00 PM