IMF report on Spain: ‘The future is gloomy’. Spain is pain.

A report on the preliminary findings of IMF staff at the conclusion of its missions (as part of regular consultations under Article IV of the IMF’s Articles of Agreement) draws an extremely gloomy outlook for the future of this european state.

Extracts:

Market confidence remains weak and the outlook is very difficult.”

The economy is in the midst of an unprecedented double-dip recession with unemployment already unacceptably high, public debt increasing rapidly, and segments of the financial sector needing recapitalization”

Despite [certain] reforms and efforts, market confidence is weak.”

“By mid-June, yields and spreads on Spanish government bonds were around their previous highs.”

 “The outlook is very difficult. The recession is deepening and unemployment is 24 percent (above 50 percent for the young) and rising.”

“Market tensions could intensify, particularly if policies fail to stem capital outflows or due to further stress elsewhere in the Euro area.”

“Private sector deleveraging could be faster than envisaged, and the fiscal consolation may have larger than envisaged output costs”

The report also outlines the necessary steps to be taken by the Spanish government to overcome the deep crisis the state is in. These steps sound as siren’s songs in the ears of Mr. Rajoy, who has already stated his unwillingness to implement IMF recommended actions.

It would be extremely unfair to make Catalonia pay for Spain’s corruption and bad management, more so when they stubbornly keep on going towards the edge despite best recommendations from prime international actors.

Catalonia needs independence and needs it now!

Read the entire report