The news from Spain aren't good today. Artur Mas, Catalonia president, has announced early elections in the region as soon as November 25. This date will be marked with independence tone following the recent demonstrations early this month. Regarding demonstrations, Spanish Congress is surrounded by people claiming against budget cuts and against the politicians squander money at the same time. Meanwhile, Marta Fernández Currás, Spain's government official, published the state of the government accounts: Spain deficit rises to €50.1B YTD in August, the 4.77% of GDP. Remember that 4,5% deficit is the target for the whole 2012. The deficit has risen 23,8% YoY from the same period of 2011.
Late on Tuesday, Carmen Martínez Aguayo, Andalusia's finance counselor, said that the south Spain region is likely to request €4.9 billions as bailout to the central government via FLA program. Andalusia would be the fourth Spanish region to request aid after the Comunidad Valencia, Catalonia and Murcia.
Combining the other regions bailouts, the total amount would raise until 14 billion, a big portion of the 18 billion that the FLA program has.
Draghi: Actions from governments must follow OMT
The Outright Monetary Transactions program (OMT) has removed unfounded euro fears and eased market concerns, ECB President Mario Draghi said Tuesday. Speaking at a conference in Berlin, Draghi stated that ECB measures can only be a bridge to a more stable future; however, he said that OMT does not solve underlying debt crisis and government measures must follow.
Mr. Draghi reiterated that the euro is irreversible and that recent upturn in sentiment strengthens rather than weakens EU governments' commitments to reform.
ECB President said that he has "enormous respect for the Bundesbank", and many ECB members share similar concerns. He goes on saying that ECB actions don't represent financing states.
