Daily Digest: The spanish denial

Right until the last minute spanish government leaders maintained a message that Spain would not need any help to solve the situation around their indebted banks. Even after they have made a deal with the eurozone partners on a lifeline at 100 billion euros the spanish leaders still denies to use the word “rescue”. Although they won’t call it a “rescue” the eurozone partners yesterday agreed to help Spain and promise them 100 billion euros from their rescue fund to secure some of Spain’s biggest banks. Because of the deal both the euro and markets have gained. But despite positive response on the markets the key dysfunction of the euro isn’t solved, the Financial Times argue, and there are still doubts whether Spain can cope without a bailout deal for the state as wellm while fears now moves to the Italian economy as the new weak link in the eurozone.

In Greece the leader of the left-wing coalition, Syriza, Alexis Tsipras, used the Spanish deal as an argument in his campaign for choosing another road than the one eurozoneleaders are committed to at the moment. “The developments in Spain confirm the position we adopted from the start – that the crisis is a pan-European problem, and the way it has been handled so far has been socially catastrophic and completely ineffectual,” Mr Tsipras told a newspaper. Greece will be hosting the next crucial event of the eurozone – the new round of elections, since it wasn’t possible to form a government coalition after last election. The political leaders of Greece are already preparing for the negotiations after the coming June 17 elections suspecting another political deadlock.

In France they had their first round of the parliamentary elections after Francois Holland was elected as new president. The parliamentary elections will be crucial for Hollande if he should succeed with the reforms that he announced in his run for president. After the first round it looks like the socialists will continue the success of the presidential race, but the results will only be clear after second round of the elections next Sunday.

In a poll made for the Times newspaper half of the britons want an immediate say on the relationship to the EU, while 81% said that they want a referendum to be held “in the next few years”. The poll found that a third of Britons wanted to be part of a single market in a wider European community, with 40 percent opposed.

It isn’t only the Britons that are getting tired of the eurozone crisis. Also some German economists have turned to the rather more fun task of forecasting the European Championships. The chances for a win for one of the eurozone countries is 86%, and the overall favorites according to the economists are Spain or Germany.

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