Daily Digest: Greek elections adding turmoil to the Spanish crisis

Spanish prime minister Mariano Rajoy will be confronted with the spanish lawmakers today over the debt deal he made during the weekend. (Photo by Council of the European Union)

The euro came under more pressure in early trading today. Markets still seems unconvinced that the rescue deal made for the Spanish banks will improve the outlooks of the country’s economy. Adding uncertainty over the Greek elections on Sunday gives the euro and the the european markets an unstable near future, which makes investors insecure. Beyond this the rating agency Fitch yesterday downgraded 18 more spanish banks short after cutting the ratings for the two biggest banks in Spain. This resulted in an euro-era closing high for Spain’s 10-year borrowing costs, while Italy’s borrowing costs also surged.

Head of Greece’s leftist party, Syriza, Alexis Tsipras is seen as a frontrunner in the Greek elections to be held on Sunday. While his success is one of the reasons that markets get insecure he seem otherwise secure that the party is in the right path for Greece. “On Monday, the forces of internal corruption and global usury will stop writing (bailout deals) because our people are about to write history,” Tsipras told at a press conference adding that a the Greek bailout deal will be history for good after the elections. Tsipras is confident that Greece will not be kicked out of the euro, while he also stated that he had a plan B if negotiations would fail.

Members of the European Parliament are furious at the danish presidency of the Council of EU. Leaders of the political groups are now threatening the danish presidency to cut their relations after a decision by member states in the council to exclude the parliament to have a say on new rules to be included in the bordellos Schengen-area. This happened at the monthly plenary in Strasbourg this week, where the members of the parliament today will discuss the budget for 2014-2020 leading up to the EU summit by the end of this month.

The feared clash between polish and russian soccer fans ended in a street fight in Warsaw yesterday before the soccer match between the two countries. At least 15 people got injured and 120 where arrested before the match in the Euro 2012 tournament began.

Today will be the first chance for spanish lawmakers to confront their prime minister Mariano Rajoy over the terms of the €100 billion bailout deal that he made with the European Union. This happens just as doubts, as mentioned earlier, over the deals effectiveness are rising.

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