Here is a Great Graphic posted on FT Alphaville. It illustrates the magnitude of Spain’s regional debt challenge. The regional debt is one of three separate but related debt problems Spain face. The other two being bank debt and sovereign deficit/debt.
There are interesting parallels between Spain and its regions on one hand and the creditors and debtors in the euro area on the other. Spain has offered limited help to to the regions, but has threatened to link the regional autonomy to solvency, as European officials appear to be doing as well (substitute regional autonomy for sovereignty). In dealing with the regions, Prime Minister Rajoy takes the position of creditor, but when dealing with the EU, Rajoy takes the stance of a debtor. This is not being hypocritical or duplicitous, but rather illustrates the different interests in different contexts. This is not a moral question, it is a material question based on whether one is a debtor or creditor.
The lower chart shows that while Sicily and Naples, (Italy’s 3rd largest city had its rating cut by Fitch yesterday to BBB from BBB+) and a few other local governments in Italy are having troubles, the debt problem in Italy is largely on the national level. Although Italy’s GDP is roughly 50% larger than Spain’s, regional debt in Spain is more than three times larger than the regional debt in Italy.
Polska chce zablokować umowę o wolnym handlu z krajami Ameryki Południowej. Powodem są głównie obawy rolników o konkurencyjność ich produktów. W jaki sposób realizacja umowy z Mercosur może wpłynąć na unijne rolnictwo i jakie mogą być też jej inne skutki?
