- Q3 not as bad as expected
- A good mark for Spain
The worse of the economic and financial crisis may be behind us in the Eurozone. Contrary to fears, recession eased in the third quarter as Eurozone GDP eased by only 0.1% q/q, following -0.2% in Q2. In addition, the easing of stress in the financial markets, which has been observed since the announcement of the OMT program by the ECB should contribute, in the midrune, to a gradual improvement in the business climate and help triggering the economic recovery in the southern countries. Several signs of this easing are perceptible. Falling disequilibrium in TARGET-2 balances is not the slightest. It is a signal that banks, in particular in southern countries, have a better access to the market. In addition, the European Commission seems to be currently softening its stance, as underlined by the Commissioner for Economic and Foreign Affairs. Indeed, Olli Rehn gave a good mark to the Spanish government, thus rewarding its tremendous efforts to consolidate public finances, even if every one knows that the deficit will not be cut to less than 3% within the agreed time schedule…
