Europe’s Eroding Foreign Investment

Today foreign direct investment (FDI) is driven by emerging nations and the impending unwinding of U.S. monetary stimulus. In Europe, the lingering debt crisis is reflected in the dramatic plunge of FDI inflows. In the postwar era, the degree of global economic integration was still relatively low. As a result, international trade played a vital […]

Looking at Europe’s Jobs Challenge: ‘A Way Out Does Exist!’

We are in the midst of an extremely delicate and fragile historical nexus. The crisis is worse than ever and is hitting above all those companies that are less-prepared and the weaker strata of society. Young people find themselves in ever-greater difficulty (one out of three in Italy and one out of two in Spain […]

The Decline of Southern Europe

“Europe is back!” is the new, though cautious, market mantra. Certainly, Europe will ultimately recover, but it will be a different Europe. Current hopes are inflated, as evidenced by the erosion of Southern Europe. The second quarter GDP figures for the euro-area economies indicated growth, for the first time in 18 months. Some fund managers […]

Spain – The Recession May Be Ending But The Crisis Continues

What follows is an interview I did over the summer with the Madrid based publication The Local. Let’s start with the basics: what are Spain’s current economic problems? Spain’s economic problems are a knock-on effect of the end of Spain’s property boom. The collapse of the property market led to a drop in incomes, depressed […]

The EU Labor Market Casts a Shadow

Harping on about disequilibrium in Europe’s labor market is hardly surprising, given high and in fact gradually rising unemployment. Even though the region should have been recovering for couple of years now, the rate for the EU-27 currently stands at 11%, with Greece and Spain displaying the worst results, with 26.9% of their labor force […]

Spain Update: Running from the Bulls?

There have been three recent developments in Spain: the new record high unemployment, the earnings reports of several large banks, and the government’s new fiscal forecasts and strategy. Spanish 10-year yields continued to trend lower over the course of the week. The roughly 35 bp decline in yield brings the drop since early February to […]

Does Emigration Put Spain’s Health and Pensions System At Risk?

According to the Economist’s Buttonwood, “desperate times require desperate measures”. I am sure this is right, times in Spain are certainly getting desperate and many of the measures being implemented in Brussels, far from representing radical and innovative solutions look much more like continually closing the barn door after the horse has bolted. The issue […]