Daily Digest: Spain’s creative bank-solution rejected by the ECB

The European Central Bank seems to deny Spain’s plans for an injection of €19 billions in the troubled bank, Bankia. Spain had an idea that they could give the bank sovereign bonds that they then could swap to cash at the ECB’s three-month refinancing window. This would help Spain avoid raising further money on bond markets. But according to European Officials this proposal is unacceptable by the ECB. In light of the attempts to recapitalise the troubled lender, the think-thank Open Europe has made a wrap-up of the situation in Spain.

The only referendum on the fiscal treaty is to be held in Ireland tomorrow, but if they vote yes it will not entirely secure the fiscal treaty, since at least 12 nations must ratify the treaty before entering in to force. Today the Swedish parliament is expected to ratify the treaty, then followed by Denmark on Thursday. If all three nations ratify the treaty then seven nations will have ratified the treaty. The biggest concerns in this process in France, Germany and of course Ireland. Here’s a good overview of the state of play in the treaty ratification.

In Denmark and Switzerland the currencies are gaining strength against the euro, which makes the central bankers in those countries uncomfortable since they manage their currencies close to the euro. It’s a fascinating story on how the euro-crisis also makes troubles in the countries outside of the euro, although it looks like luxury problems compared to the euro-members. The reassuring thing about, though, is that as long as the countries in Europe keeps getting investments it doesn’t mean that the euro-crisis is intensifying.

Although these countries currencies gains from not being a part of the eurozone the biggest bank in Greece would not recommend that Greece exits the euro. ”A euro exit would lead to a significant drop in living standards for Greek citizens,” the country’s premier lender has said.

The daughter of the jailed opposition leader in Ukraine, Julia Tymoshenko, warns against a political boycott on the Euro 2012 tournament about to begin in Ukraine within the next couple of weeks. The daughter Eugenia Tymoshenko has said that she understood the boycotts, but that she thinks “sports events should go on.” Another political person that doesn’t share the same enthusiasm for the football sports is the italian prime minister Mario Monti. Yesterday he proposed that soccer in Italy should be suspended for two or three years in the wake of a major match-fixing scandal in the country. Sorry, Monti, but that’s not gonna happen.

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