Spain is a troubled country

By Hugo Dixon
November 10, 2014

Spain has been held up to other euro zone countries as an example of the benefits of structural reform. That’s fair enough, up to a point. The conservative government’s bank rescues and labour reform have stabilised the financial system and improved competitiveness. The economy is expected to grow 1.2 percent this year and 1.7 percent next year by the European Commission.

Euro crisis is sleeping, not dead

By Hugo Dixon
July 28, 2014

Euro zone policymakers may feel they can afford to relax this summer. That would be a terrible error. The euro crisis is sleeping, not dead.

Spain’s recovery clouded by politics

By Hugo Dixon
April 7, 2014

Spain’s recovery is clouded by politics. Mariano Rajoy has achieved a lot in the two years that he has been prime minister. Growth has finally returned; even unemployment is falling. But as Spain enters a new electoral cycle, the appetite for reform is waning. What’s more, there is a big question mark about what will happen after the next election, which has to be held by March 2016.

Spain probably won’t catch Italian flu

By Hugo Dixon
March 4, 2013

One knee-jerk reaction to Italy’s shock election was to worry about contagion to Spain. As Rome’s bond yields shot up last Tuesday, Madrid’s were dragged up in sympathy. These are the two troubled big beasts of the euro zone periphery and an explosion in either of them could destroy the single currency.

Is Hollande more like Rajoy or Monti?

By Hugo Dixon
November 19, 2012

Is Francois Hollande more like Mariano Rajoy or Mario Monti? In other words, is the French socialist president condemned to be always behind the curve with reform like Spain’s conservative prime minister? Or can he get ahead of it like Italy’s technocratic premier?

Spanish circle getting hard to square

By Hugo Dixon
October 15, 2012

The art of politics is about squaring circles. In the euro crisis, this means pushing ahead with painful but necessary reforms while hanging onto power.

Spain and Italy mustn’t blow ECB plan

By Hugo Dixon
September 10, 2012

The European Central Bank’s bond-buying scheme has bought Spain and Italy time to stabilise their finances. But if they drag their heels, the market will sniff them out. It will then be almost impossible to come up with another scheme to rescue the euro zone’s two large problem children and, with them, the single currency.

Confidence tricks for the euro zone

By Hugo Dixon
July 23, 2012

The euro crisis is to a great extent a confidence crisis. Sure, there are big underlying problems such as excessive debt and lack of competitiveness in the peripheral economies. But these can be addressed and, to some extent, this is happening already. Meanwhile, a quick fix for the confidence crisis is needed.

Successful summit didn’t solve crisis

By Hugo Dixon
July 2, 2012

Cuando despertó, el dinosaurio todavía estaba allí. “Upon waking, the dinosaur was still there.”

Rajoy’s ploys risk stoking cynicism

By Hugo Dixon
March 19, 2012

At a dinner in Madrid earlier this month, the main complaint about Mariano Rajoy was that the new prime minister was treating the electorate like children. Many of the guests, supporters of Rajoy’s Popular Party (PP), understood that Spain had to cut its fiscal deficit and restore its competitiveness. But they didn’t like the fact that the prime minister hadn’t been frank about his plans.