In some respects, Spain is in a healthier position than Italy. It is not subverting its democratic system by resorting to a stopgap technocratic government. A general election on Sunday should see the Socialists lose and a new conservative government take over, ensuring political stability. Spain's debt position is stronger, too. Whereas Italy's total sovereign debt is 120 per cent of gross domestic product, in Spain it will be no more than 80 per cent in 2013 – the same as France and Germany. Nor is it facing any large bond redemptions until next April, according to Capital Economics. So its financing position is broadly secure.
Spain lacks Italy's vast private wealth resources, however: private sector debt ballooned during the boom. Now Spanish consumers have stopped spending, and the economy stagnated in the third quarter. Some progress has been made in reducing its fiscal deficit, but Spain will probably miss its 6 per cent target for this year; the only question is by how much.
Read the whole tory here: http://www.ft.com/intl/cms/s/3/6f5d4474-1118-11e1-ad22-00144feabdc0.html#axzz1dygUpXTW
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